THE COMMISSIONER OF INCOME TAX Vs. SRISHTI CONSTRUCTION

JUDGEMENT

(1.) This appeal has been filed by the revenue under Sec. 260A of the Income Tax Act, 1961 (in short, "the Act") against the order dated 27.12.2012, Annexure -3 passed by the Income Tax Appellate Tribunal, Amritsar Bench, Amritsar in ITA No. 74(ASR)/2011 for the assessment year 2007 -08, claiming following substantial questions of law: - -

(2.) A few facts relevant for the decision of the controversy involved as narrated in the appeal may be noticed. The assessee is a civil contractor and has executed various projects like railway over -bridges, airport and other government constructions. During assessment proceedings, the Assessing Officer noted that the assessee had not shown any closing stock or closing Working in Progress (WIP) in the profit and loss account/balance sheet for the year ending 31.3.2007. The assessee had not maintained stock register. The method of valuation of closing stock was stated to be at cost or market value whichever was lower. The Assessing Officer made the following additions on account of closing stock/WIP: - -

(3.) We have heard learned counsel for the parties.