COMMISSIONER OF INCOME TAX Vs. ISKRAEMECO SEAHORSE LTD

JUDGEMENT

(1.) THIS appeal is directed against the order of the Income Tax Appellate Tribunal, Madras, 'b' Bench dated 26. 8. 2003 made in I. T. A. No. 1620/mds/1996 for the assessment year 1992-93, raising the following substantial question of law:

(2.) THE assessee Company formerly known as M/s. SIMCO Engineering Ltd. , filed its return for the assessment year 1992-93 claiming a loss of Rs. 3,51,98,473/ -. The assessment was completed under Section 143 (3) of the Income Tax Act, determining the loss at Rs. 3,15,09,085/ -. The loss was thus reduced on account of certain additions made, of which the main addition was in respect of valuation of closing stock amounting to Rs. 13,67,168/ -. While the assessee valued the closing stock at net of MODVAT, the Assessing Officer, finding that the assessee has not given any explanation for excluding the element of MODVAT credit, held that the assessee's method of valuation of closing stock was not acceptable and accordingly disallowed loss to the extent of Rs. 13,67,168/ -.

(3.) MR. N. MURALIKUMARAN, learned Senior Standing Counsel for the appellant fairly concedes that the controversy in this appeal stands concluded by the decision of the Apex Court in CIT v. Indo Nippon Chemicals Co. Ltd. , [2003] 261 ITR 275.