Ita/298/2010 Of The Commissioner Of Income Tax v. Appolo Tyres Ltd

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.N.RAMACHANDRAN NAIR & THE HONOURABLE MR. JUSTICE K.SURENDRA MOHAN WEDNESDAY, THE 13TH OCTOBER 2010 / 21ST ASWINA 1932 ITA.No. 298 of 2010() --------------------- ITA.438/2004 of I.T.A.TRIBUNAL,COCHIN BENCH .................... APPELLANT/RESPONDENT ---------------------------------------- THE COMMISSIONER OF INCOME TAX, COCHIN. BY ADV. SRI.P.K.R.MENON,SR.COUNSEL, GOI(TAXES) SRI.JOSE JOSEPH, SC, FOR INCOME TAX RESPONDENT(S): APPELLANT ------------------------ M/S.APOLLO TYRES LTD,6TH FLOOR, CHERUPUSHPAM BUILDINGS,SHANMUGHAM ROAD, KOCHI-31. THIS INCOME TAX APPEAL HAVING COME UP FOR ADMISSION ON 13/10/2010, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: C .N. RAMACHANDRAN NAIR, &K. SURENDRA MOHAN, JJ. -------------------------------------------- -------------------------------------------- Dated this the 13th day of October, 2010 JUDGMENT Ramachandran Nair, J. Heard standing counsel appearing for the revenue. The mainquestion raised pertains to valuation of closing stock and work-in-progress. Even though the order of the Tribunal is very brief, wenotice that Tribunal rejected department's case for the reason that theassessee made valuation based on accounting standards issued by theInstitute of Chartered Accountants of India. It is seen that the samevaluation is followed for all subsequent assessment years, whereassessments would have been completed. The assessment involved inthis case is for the year 2000-01 and therefore we do not find anyjustification to change the system of valuation followed by the assesseefor the last nine years. We therefore reject the appeal on this issue.The second question raised pertains to addition of Rs. 25 lakhs onaccount of disallowance which was reduced and sustained by theTribunal at Rs. 10 lakhs. We feel this question pertains to only finding ITA 298 of 2010 on fact and is not a substantial question of law. We therefore decline to interfere in the matter. Consequently the appeal filed by the revenue isdismissed. (C.N.RAMACHANDRAN NAIR)Judge. (K. SURENDRA MOHAN) Judge. kk