CIT v. SAS Hotel & Enterprises Ltd.

DCIT, NEW DELHI vs. M/S. HCL COMNET LTD., NEW DELHI

In the result this ground is dismissed

Bench: Shri S.V. Mehrotra : & Shri C.M. Garg :

…ect the valuation of these inventories and otherwise accept the book results declared by assessee. This is permissible in law, in support of which he referred to the judgment of the Hon’ble Madras High Court in the case of CIT Vs. SAS Hotel & Enterprises Ltd. 334 ITR 194. 18. Ld. CIT(DR) submitted that assessee had resorted to reduce 25% of the value every year of spares and stocks, which is not the correct method of arriving at net realizable value of spares. He submitted that assessee should have backed its claim by some evidence regarding net realizable value. Thus, he pointed out that the valuation is not ba…

HCL COMNET LTD.,NEW DELHI vs. DCIT, NEW DELHI

In the result this ground is dismissed

Bench: Shri S.V. Mehrotra : & Shri C.M. Garg :

…ect the valuation of these inventories and otherwise accept the book results declared by assessee. This is permissible in law, in support of which he referred to the judgment of the Hon’ble Madras High Court in the case of CIT Vs. SAS Hotel & Enterprises Ltd. 334 ITR 194. 18. Ld. CIT(DR) submitted that assessee had resorted to reduce 25% of the value every year of spares and stocks, which is not the correct method of arriving at net realizable value of spares. He submitted that assessee should have backed its claim by some evidence regarding net realizable value. Thus, he pointed out that the valuation is not ba…

DCIT, NEW DELHI vs. M/S. HCL COMNET LTD., NEW DELHI

In the result this ground is dismissed

Bench: Shri S.V. Mehrotra : & Shri C.M. Garg :

…ect the valuation of these inventories and otherwise accept the book results declared by assessee. This is permissible in law, in support of which he referred to the judgment of the Hon’ble Madras High Court in the case of CIT Vs. SAS Hotel & Enterprises Ltd. 334 ITR 194. 18. Ld. CIT(DR) submitted that assessee had resorted to reduce 25% of the value every year of spares and stocks, which is not the correct method of arriving at net realizable value of spares. He submitted that assessee should have backed its claim by some evidence regarding net realizable value. Thus, he pointed out that the valuation is not ba…

ACIT, NEW DELHI vs. M/S. HCL COMNET LTD., NEW DELHI

In the result this ground is dismissed

Bench: Shri S.V. Mehrotra : & Shri C.M. Garg :

…ect the valuation of these inventories and otherwise accept the book results declared by assessee. This is permissible in law, in support of which he referred to the judgment of the Hon’ble Madras High Court in the case of CIT Vs. SAS Hotel & Enterprises Ltd. 334 ITR 194. 18. Ld. CIT(DR) submitted that assessee had resorted to reduce 25% of the value every year of spares and stocks, which is not the correct method of arriving at net realizable value of spares. He submitted that assessee should have backed its claim by some evidence regarding net realizable value. Thus, he pointed out that the valuation is not ba…

HCL COMNET LTD.,NEW DELHI vs. CIT, NEW DELHI

In the result this ground is dismissed

Bench: Shri S.V. Mehrotra : & Shri C.M. Garg :

…ect the valuation of these inventories and otherwise accept the book results declared by assessee. This is permissible in law, in support of which he referred to the judgment of the Hon’ble Madras High Court in the case of CIT Vs. SAS Hotel & Enterprises Ltd. 334 ITR 194. 18. Ld. CIT(DR) submitted that assessee had resorted to reduce 25% of the value every year of spares and stocks, which is not the correct method of arriving at net realizable value of spares. He submitted that assessee should have backed its claim by some evidence regarding net realizable value. Thus, he pointed out that the valuation is not ba…

LUNAR ELECTRICALS vs. ASSTT. COMMISSIONER OF INCOME

The appeal is disposed of

…leted contract method is contrary and cannot be adopted and applied when an assessee follows mercantile system of accounting. This issue was examined by the Madras High Court in Commissioner of Income Tax versus SAS Hotels and Enterprises Limited, (2011) 334 ITR 194 (Mad.) and it has been held that the said method confirms and can be adopted by an assessee. In fact, we find that there is a 2012:DHC:2025-DB ITA No. 195/2006 Page 9 of 10 contradiction in the orders of both the CIT(Appeals) and th…

LUNAR ELECTRICALS vs. ASSISTANT COMMISSIONER OF INCOME TAX

The appeal is disposed of

…leted contract method is contrary and cannot be adopted and applied when an assessee follows mercantile system of accounting. This issue was examined by the Madras High Court in Commissioner of Income Tax versus SAS Hotels and Enterprises Limited, (2011) 334 ITR 194 (Mad.) and it has been held that the said method confirms and can be adopted by an assessee. In fact, we find that there is a 2012:DHC:2025-DB ITA No. 195/2006 Page 9 of 10 contradiction in the orders of both the CIT(Appeals) and th…