Allowing the appeal of the asseessee the Tribunal held that the assessee had made proper disclosure of facts in audited accounts as well as in transactional documents which proved that assessee had sold both plant & machinery and Capital WIP for composite consideration of Rs. 27,50,00,000. and order of PCIT which was based on incorrect understanding of material facts was unsustainable and need to be set aside on this score alone. Accordingly, both assessee as well as AO was right in law in taking into account cost of acquisition of capital WIP for computing overall loss accruing on sale of fixed assets including capital WIP.( AY.2012-13)
Titagarh Industries Ltd. v. DCIT (2018) 195 TTJ 1010 (Kol.)(Trib.)
S. 263 : Commissioner-Revision of orders prejudicial to revenue-capital work in progress- Short term loss-Assessee has sold plant and machinery along with capital WIP, then order passed by AO cannot be considered as erroneous and prejudicial to interest of revenue. [S. 143(3)]