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Asstt. Cit vs Woodword Governors India (P) Ltd. on 20 April, 2007

19. The assessee had valued its opening stock and closing stock on the basis of cost or net realisable value, whichever is low. The AO had faulted the assessee from valuing the stock at a value lower than the cost. There is no dispute that the assessee had been consistently valuing its stock - both opening stock and closing stock - on the basis of cost or realisable value, whichever is lower. The aforesaid basis is well accepted for valuation of stock. The said basis was also noted by the Supreme Court in CIT v. Woodword Governor India (P.) Ltd.: (2009) 312 ITR 254. The learned counsel for the Revenue also does not dispute that if the aforesaid basis is followed consistently, the assessee's income for the year would be fully captured as the element of profit would also not be included in the opening stock.
Income Tax Appellate Tribunal - Delhi Cites 2 - Cited by 15 - Full Document

Commissioner Of Income Tax vs Vinitec Corporation Pvt. Ltd. on 5 May, 2005

"We have heard learned counsel for the parties and perused the order under challenge. The issue whether amounts set apart by the assessee to meet claims arising out of warranties issued by it to its customers can be taken as a permissible deduction under section 37 is no longer res integra in the light of a Division Bench of this Court in Commissioner of Income Tax Vs. Vinitec Corpn (P.) Ltd, 278 ITR 337.
Delhi High Court Cites 14 - Cited by 58 - S Kumar - Full Document

Bharat Earth Movers vs Commissioner Of Income Tax, Karnataka on 9 August, 2000

This Court has relied upon the decision of the Supreme Court in Bharat Earth Movers Vs. CIT, 245 ITR 428 and Commissioner of Inland Revenue v. Mitsubishi Motors New Zealand Ltd., 222 ITR 697 held that the liability arising out of a warranty is an allowable deduction even when the amount payable by the assessee is quantified and discharged in future. The following passage from the above decision is in this regard apposite:
Supreme Court of India Cites 5 - Cited by 480 - R C Lahoti - Full Document
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