2011 (12) TMI 243

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..... ed at cost plus Rs.100/- per ton for the last 15 years. Such method of valuation has not found favour with the Hon’ble Supreme Court in the aforesaid case. - Decided in favor of Revenue. - ITR No.149 of 1995 ITR No.358 of 1995 ITR No.359 of 1995 ITR No.138 of 1999 ITR No.139 of 1999 - - - Dated:- 7-12-2011 - MR. JUSTICE HEMANT GUPTA, MR. JUSTICE G.S.SANDHAWALIA, JJ. Present: M/s Akshay Bhan Alok Mittal, Advocates, for the assessee. Mr. Rajesh Katoch, Advocate, for the Revenue. H EMANT GUPTA, J. (ORAL) This order shall dispose of afore-mentioned five references pertaining to the assessment years as mentioned above and arising out an order passed by the Income Tax Appellate Tribunal, Chandigarh Bench, Chandigarh (f .....

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..... method of valuation would go wrong and if any wrong thing has been committed in the past, it can be amended in respective years. After returning such finding, an addition of Rs.1,13,765/- was made in the relevant assessment year. The Commissioner of Income-Tax, in appeal, deleted the said addition relying upon the order passed by the Commissioner of Income Tax in previous year i.e. 1983-84 for the reason that the assessee has consistently adopted the said method of valuation of closing stock and that the method of valuation adopted by the assessing officer is not a correct method, as this is only the valuation of stock in process and not the manufactured goods. However, the learned Tribunal in further appeal by the Revenue set aside th .....

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..... s of the Act, the method adopted by the assessee has been found to be such that income cannot properly be deduced therefrom. It is, therefore, not only the right but the duty of the Assessing Officer to act in exercise of his statutory power, as he has done in the instant case, for determining what, in his opinion, is the correct taxable income. In the present case, the assessee has not taken into consideration actual manufacturing expenses while valuing the closing stock. The assessee has been valuing the closing stock by adding Rs.100/- per ton for the last 15 years. Such method of valuation has not found favour with the Hon ble Supreme Court in the aforesaid case. Still further, the Hon ble Supreme Court in Britsh Paints India Ltd. .....

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