IN HIGH COURT OF JUDICATURE AT MADRAS DATED: 17.2.2020 CORAM HON'BLE DR.JUSTICE VINEET KOTHARI AND HON'BLE MR.JUSTICE R.SURESH KUMAR Tax Case No.669 of 2008 Commissioner of Income Tax Chennai. Appellant Vs. M/s.NEPC India Ltd. 36, Wallajah Road, Chennai 600 002. Respondent Tax Case filed under Section 260A of Income Tax Act, 1961 against order of Income Tax Appellate Tribunal, 'B' Bench, Chennai, dated 29.6.2007 made in ITA No.554/Mds/2003. For Appellant : Mr.T.R.Senthilkumar Senior Standing Counsel For Respondent : Mr.R.Sivaraman JUDGMENT (Delivered by DR.VINEET KOTHARI,J) Revenue has preferred this Appeal under Section 260A of Act challenging order passed by learned Income Tax Appellate Tribunal dated 29.6.2007, by which, learned Tribunal upheld order of first Appellate Authority and approved manner in which computation of raw materials consumed and consumables debited to Profit and Loss Account was approved by both Appellate http://www.judis.nic.in Judgt. dt. 17.2.2020 in T.C.669/2008 CIT v. NEPC India Ltd. 2/6 Authorities. 2. relevant portion of order passed by learned Tribunal is quoted below for ready reference:- "25. We have considered rival submissions carefully in light of material on record. It is not always necessary to take figures of opening and closing stock of raw materials and consumables, etc. into Profit & Loss Account and sometimes, only net figures of consumption are debited into Profit & Loss Account. This will be clear from following working given by ld. CIT(A)- (Figures in lakhs Opening stock of raw material 3317.31 Purchase of raw materials 746.78 Customs duty 91.33 4155.42 Less: Closing stock of raw material 3291.26 Raw materials consumed 864.16 Add: Decrease in stock of finished goods Opening stock of finished goods 7204.39 Less: Closing stock of finished goods 6922.76 281.63 This is taken to P&L account as 1145.49 Raw materials consumed in schedule 14 Opening stock of consumables 4349.13 Add: Purchase of consumables 54.51 http://www.judis.nic.in Judgt. dt. 17.2.2020 in T.C.669/2008 CIT v. NEPC India Ltd. 3/6 (Figures in lakhs 4403.64 Less: Closing stock of consumables 4226.17 177.47 This is shown in P&L account as 174.28 (i) Manufacturing expenses (ii) Stores and spares 3.19 177.47 26. From above, it is clear that assessee treated raw material consumption at Rs.864.16 lakhs and closing stock shown in this working amounting to Rs.3291.26 lakhs tallied with closing stock shown in balance sheet. Same is situation in regard to consumables also. Therefore, ld. CIT(A) has correctly deleted addition and we find nothing wrong with order of ld. CIT(A) and confirm same." 3. Having heard learned counsel for parties, we are satisfied that said findings of learned Tribunal do not give rise to any substantial question of law as said exercise of computation of Profit and Loss of Assessee based on constant practice of Assessee of taking only raw materials consumed and consumables debited to Profit and Loss Account was found to be proper by Appellate Authorities and http://www.judis.nic.in Judgt. dt. 17.2.2020 in T.C.669/2008 CIT v. NEPC India Ltd. 4/6 therefore, in our opinion, said finding of facts cannot be said to be perverse giving rise to any substantial question of law requiring examination and determination by this court. 4. Appeal stands admitted by co-ordinate Bench of this court on 7.7.2008 by framing following question of law:- "Whether on facts and circumstances of case, revised statement for earlier year, which had been rejected in that year could be accepted as basis for different in valuation of closing and opening stock?" 5. However, we do not find any merit in present Appeal filed by Revenue as unless finding of facts rendered by Appellate Tribunal unless it is proved to be perverse, it does not call for any interference or give rise to any substantial question of law requiring examination under Section 260A of Act. Therefore, Appeal filed by Revenue is liable to be dismissed. Accordingly, it is dismissed. No costs. (V.K.,J.) (R.S.K.,J.) 17.2.2020 Index : Yes/No Internet : Yes/No ssk. dt. 17.2.2020 in T.C.669/2008 CIT v. NEPC India Ltd. 5/6 To 1. Commissioner of Income Tax Chennai. 2. Income Tax Appellate Tribunal, 'B' Bench, Chennai. 3. M/s.NEPC India Ltd. 36, Wallajah Road, Chennai 600 002. Judgt. dt. 17.2.2020 in T.C.669/2008 CIT v. NEPC India Ltd. 6/6 DR.VINEET KOTHARI, J. and R.SURESH KUMAR, J ssk. Tax Case No.669 of 2008 17.2.2020 Commissioner of Income-tax, Chennai v. NEPC India Ltd