DY CIT Vs. HINDUSTAN ZINC LTD

JUDGEMENT

(1.) This is an appeal by the revenue against the order of Commissioner (Appeals), Udaipur, for assessment year 1990-91. The appellant agitated on various grounds which are being discussed and decided in this order.

(2.) Ground No. 1-deletion of addition of Rs. 4,76,84,000 made on account of provision for losses in stores, stock, raw material and finished goods. We find that this ground of appeal is covered by ground No. 3 of appeal in ITA No. 321/Jp/1996 for assessment year 1992-93 through order of this Bench, dated 17-10-1991. For the reasons given therein, we decline to interfere with the order of the Commissioner (Appeals).

(3.) Ground No. 2-deletion of addition of Rs. 4,58,000 being excess amortization of expenses. This has reference to the comments of the C &; AG under section 619 of the Companies Act, 1956 wherein it has been stated that the expenditure on mine exploration and development expenditure in respect of Rajpura-Dariba Mines was not done in accordance with Accounting Policy II(d) which resulted in excess amortisation of expenditure by Rs. 4.58 lacs during 1989-90 and less amortisation by Rs. 105.07 lacs during the years 1984-85 to 1988-89. This had the effect of understatement of profit for 1989-90 by Rs. 4.58 lacs and overstatement of balance of surplus carried to balance sheet by Rs. 100.49 lacs upto 1989-90. On the basis of this, the Dy. CIT has made the addition of Rs. 4,58,000.