CIT v. Nation & Grindlays

145 ITR 457High Court#9395 most cited

What is CIT v. Nation & Grindlays authority for?

An assessee can change their method of valuing closing stock, including changing to market price or cost price, whichever is lower, provided the change is bona fide and consistently followed thereafter. Land under encroachment or litigation, not in possession of the assessee, should be valued at Nil following the principle of prudence.

11

judgments rely on this decision, according to BharatTax’s citation analysis of 366,314 Indian tax judgments — from 2017 to 2020.

Also referred to as

CIT v Nation & Grindlays · 145 ITR 457 · change in accounting method · valuation of closing stock · bona fide change · market price · cost price · prudence · land under encroachment · land under litigation · valuation at Nil

Judgments citing CIT v. Nation & Grindlays

Mahanadi Coalfields Ltd., Sambalpur vs. DCIT, Circle-2(1), Sambalpur

In the result, appeal of the assessee is partly allowed for

ITA 174/CTK/2018[2015-16]Status: DisposedITAT Cuttack05 Jun 2020AY 2015-16

Bench: Shri C.M. Garg, Jm & Shri L.P. Sahu, Am आयकर अपीऱ सं./Ita No.174/Ctk/2018 (नििाारण वषा / Assessment Year : 2015 - 2016) Mahanadi Coalfields Ltd., Vs. Dcit, Circle-2(1), Sambalpur Jagriti Vihar, Burla, Sambalpur स्थायी ऱेखा सं./Pan No. : Aabcm 5188 P (अऩीऱाथी /Appellant) (प्रत्यथी / Respondent) .. यनधागररती की ओर से /Assessee By : Shri S.S.Podar, Ca राजस्व की ओर से /Revenue By : Shri S.M.Keshkamat, Citdr सुनवाई की तारीख / Date Of Hearing : 15/01/2020 घोषणा की तारीख/Date Of Pronouncement : 05/06/2020 आदेश / O R D E R Per L.P.Sahu, Am :

For Appellant: Shri S.S.Podar, CAFor Respondent: Shri S.M.Keshkamat, CITDR

Section 143(3)Section 14ASection 32Section 35ESection 37Section 37(1)

…that irrespective of the basis adopted for valuation for earlier years, the assessee has an option to change the method of valuation of closing stock provided the change is bona fide and followed regularly thereafter. • CIT vs National &Grindlays Bank Ltd. [145 ITR 457 (Cal.)] • CIT vs National &Grindlays Bank Ltd. [202 ITR 559 (Cal.)] In these cases, the Calcutta High Court upheld the case of the assessee for change in method of valuation of closing stock to market price or cost price whichever is lower as the change in method adopted was bona fide as well as the changed system was being followed subsequentl…

ACIT, Jaipur vs. Rajasthan State Industrial Development & Investment Corporation Ltd., Jaipur

In the result, appeals of the assessee are partly allowed and appeals of the Revenues are dismissed

ITA 323/JPR/2016[2009-10]Status: DisposedITAT Jaipur23 Feb 2018AY 2009-10

…much as when the land under encroachment / litigation is not under the possession of the assessee, by following the principle of prudence such land needs to be valued at Nil. He has relied upon the following decisions:- • CIT vs. Nation & Grindlays bank Ltd. 145 ITR 457 • Shri Ram Bearing Ltd. vs CIT 199 ITR 579 The ld. AR has further submitted that for the A.Y. 2007-08 on this very issue the Tribunal vide order dated 24.06.2011 has set aside the issue to AO with the directions that when the litigation and encroachment will affect the valuation of the stock such cannot be valued at cost price. Thus, he has…

Rajasthan State Industrial Development & Investment Corp. Ltd., Jaipur vs. ACIT, Jaipur

In the result, appeals of the assessee are partly allowed and appeals of the Revenues are dismissed

ITA 94/JPR/2015[2012-13]Status: DisposedITAT Jaipur23 Feb 2018AY 2012-13

…much as when the land under encroachment / litigation is not under the possession of the assessee, by following the principle of prudence such land needs to be valued at Nil. He has relied upon the following decisions:- • CIT vs. Nation & Grindlays bank Ltd. 145 ITR 457 • Shri Ram Bearing Ltd. vs CIT 199 ITR 579 The ld. AR has further submitted that for the A.Y. 2007-08 on this very issue the Tribunal vide order dated 24.06.2011 has set aside the issue to AO with the directions that when the litigation and encroachment will affect the valuation of the stock such cannot be valued at cost price. Thus, he has…

Rajasthan State Industrial Development & Investment Corp. Ltd., Jaipur vs. ACIT, Jaipur

In the result, appeals of the assessee are partly allowed and appeals of the Revenues are dismissed

ITA 93/JPR/2015[2011-12]Status: DisposedITAT Jaipur23 Feb 2018AY 2011-12

…much as when the land under encroachment / litigation is not under the possession of the assessee, by following the principle of prudence such land needs to be valued at Nil. He has relied upon the following decisions:- • CIT vs. Nation & Grindlays bank Ltd. 145 ITR 457 • Shri Ram Bearing Ltd. vs CIT 199 ITR 579 The ld. AR has further submitted that for the A.Y. 2007-08 on this very issue the Tribunal vide order dated 24.06.2011 has set aside the issue to AO with the directions that when the litigation and encroachment will affect the valuation of the stock such cannot be valued at cost price. Thus, he has…

DCIT, Jaipur vs. Rajasthan State Industrial Development & Investment Corportation Ltd., Jaipur

In the result, appeals of the assessee are partly allowed and appeals of the Revenues are dismissed

ITA 208/JPR/2015[2012-13]Status: DisposedITAT Jaipur23 Feb 2018AY 2012-13

…much as when the land under encroachment / litigation is not under the possession of the assessee, by following the principle of prudence such land needs to be valued at Nil. He has relied upon the following decisions:- • CIT vs. Nation & Grindlays bank Ltd. 145 ITR 457 • Shri Ram Bearing Ltd. vs CIT 199 ITR 579 The ld. AR has further submitted that for the A.Y. 2007-08 on this very issue the Tribunal vide order dated 24.06.2011 has set aside the issue to AO with the directions that when the litigation and encroachment will affect the valuation of the stock such cannot be valued at cost price. Thus, he has…

DCIT, Jaipur vs. Rajasthan State Industrial Development & Investment Corportation Ltd., Jaipur

In the result, appeals of the assessee are partly allowed and appeals of the Revenues are dismissed

ITA 207/JPR/2015[2011-12]Status: DisposedITAT Jaipur23 Feb 2018AY 2011-12

…much as when the land under encroachment / litigation is not under the possession of the assessee, by following the principle of prudence such land needs to be valued at Nil. He has relied upon the following decisions:- • CIT vs. Nation & Grindlays bank Ltd. 145 ITR 457 • Shri Ram Bearing Ltd. vs CIT 199 ITR 579 The ld. AR has further submitted that for the A.Y. 2007-08 on this very issue the Tribunal vide order dated 24.06.2011 has set aside the issue to AO with the directions that when the litigation and encroachment will affect the valuation of the stock such cannot be valued at cost price. Thus, he has…

ACIT, Jaipur vs. Rajasthan State Industrial Development & Investment Corp., Jaipur

In the result, appeals of the assessee are partly allowed and appeals of the Revenues are dismissed

ITA 421/JPR/2014[2010-11]Status: DisposedITAT Jaipur23 Feb 2018AY 2010-11

…much as when the land under encroachment / litigation is not under the possession of the assessee, by following the principle of prudence such land needs to be valued at Nil. He has relied upon the following decisions:- • CIT vs. Nation & Grindlays bank Ltd. 145 ITR 457 • Shri Ram Bearing Ltd. vs CIT 199 ITR 579 The ld. AR has further submitted that for the A.Y. 2007-08 on this very issue the Tribunal vide order dated 24.06.2011 has set aside the issue to AO with the directions that when the litigation and encroachment will affect the valuation of the stock such cannot be valued at cost price. Thus, he has…

ACIT, Jaipur vs. Rajasthan State Industrial Development & Investment Corp., Jaipur

In the result, appeals of the assessee are partly allowed and appeals of the Revenues are dismissed

ITA 420/JPR/2014[2009-10]Status: DisposedITAT Jaipur23 Feb 2018AY 2009-10

…much as when the land under encroachment / litigation is not under the possession of the assessee, by following the principle of prudence such land needs to be valued at Nil. He has relied upon the following decisions:- • CIT vs. Nation & Grindlays bank Ltd. 145 ITR 457 • Shri Ram Bearing Ltd. vs CIT 199 ITR 579 The ld. AR has further submitted that for the A.Y. 2007-08 on this very issue the Tribunal vide order dated 24.06.2011 has set aside the issue to AO with the directions that when the litigation and encroachment will affect the valuation of the stock such cannot be valued at cost price. Thus, he has…

Rajasthan State Industrial Development & Investment Corp. Ltd., Jaipur vs. ACIT, Jaipur

In the result, appeals of the assessee are partly allowed and appeals of the Revenues are dismissed

ITA 313/JPR/2014[2010-11]Status: DisposedITAT Jaipur23 Feb 2018AY 2010-11

…much as when the land under encroachment / litigation is not under the possession of the assessee, by following the principle of prudence such land needs to be valued at Nil. He has relied upon the following decisions:- • CIT vs. Nation & Grindlays bank Ltd. 145 ITR 457 • Shri Ram Bearing Ltd. vs CIT 199 ITR 579 The ld. AR has further submitted that for the A.Y. 2007-08 on this very issue the Tribunal vide order dated 24.06.2011 has set aside the issue to AO with the directions that when the litigation and encroachment will affect the valuation of the stock such cannot be valued at cost price. Thus, he has…

Rajasthan State Industrial Development & Investment Corp. Ltd., Jaipur vs. DCIT, Jaipur

In the result, appeals of the assessee are partly allowed and appeals of the Revenues are dismissed

ITA 311/JPR/2014[2009-10]Status: DisposedITAT Jaipur23 Feb 2018AY 2009-10

…much as when the land under encroachment / litigation is not under the possession of the assessee, by following the principle of prudence such land needs to be valued at Nil. He has relied upon the following decisions:- • CIT vs. Nation & Grindlays bank Ltd. 145 ITR 457 • Shri Ram Bearing Ltd. vs CIT 199 ITR 579 The ld. AR has further submitted that for the A.Y. 2007-08 on this very issue the Tribunal vide order dated 24.06.2011 has set aside the issue to AO with the directions that when the litigation and encroachment will affect the valuation of the stock such cannot be valued at cost price. Thus, he has…

Sbi Capitalmarkets Ltd vs. DCIT Sp. RG 27

The appeal of the AO stands dismissed

ITA 294/MUM/1999[1994-95]Status: DisposedITAT Mumbai27 Oct 2017AY 1994-95

For Appellant: Shri Nitesh Joshi-ARFor Respondent: Shri BCS Naik-CIT-DR & Saurabh Kumar Rai

…nt years,that the average cost method adopted by it was one of the accepted methods of accounting,that the claim of the assessee should be allowed.He relied on the ratio laid down in the cases of Corborundum Universal Ltd. (149 ITR 784) and ANZ Grindlays Bank(145 ITR 457). 1380/M/99;1055/M/99,1127/M/96;4959/M/97;294/Mum/19-SBI Capital Markets Ltd. 10.3.We have heard the rival submissions and perused the material before us.We find that the AO had rejected the change in method of accounting as it resulted in payment of lower taxes in the year under consideration,that the FAA allowed the appeal of the assessee. M…