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TMI Blog2013 (9) TMI 878X X X X Extracts X X X X X X X X Extracts X X X X ..... inst the Revenue. - Income Tax Appeal No. - 1 of 2004 - - - Dated:- 3-9-2013 - Hon'ble Rajiv Sharma And Hon'ble Dr. Satish Chandra,JJ. For the Appellant : D. D. Chopra, Prashant Kumar For the Respondent : R. A. Shankhdhar ORDER Present appeal has been filed by the department under Section 260-A of the Income Tax Act, 1961, against the judgment and order dated 22.08.2003, passed by the Income Tax Appellate Tribunal, Lucknow in I.T.A.No.452/Alld/97, for the assessment year 1987-88. On 16.01.2004, a coordinate Bench of this Court has admitted the appeal on the following substantial question of law:- "Whether the Income Tax Appellate Tribunal was justified in confirming the deletion of Rs.75,84,346/- on account of low ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... production was allowed to be sold in the open market as free sale sugar. Absolutely, there is no difference in the quality of free sale sugar and levy sugar and the cost of production comes to Rs.524.94 per qtl. He further submits that the procurement price fixed by the Government for levy sugar does not constitute market price. The market price should be adopted on the basis of selling rate as prevailing in the open market. On specific enquiry, learned counsel accepts that the assessee has to supply the quota of levy sugar below its cost price and this affect the trading result of the assessee but such loss is simultaneously compensated by release of free sale sugar which is permitted to be sold at higher price in the open market. The l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce whichever was low. We have heard learned counsel for the parties at length and gone through the material available on record. So far as the levy sugar is concerned, the quota is fixed by the Government every year and sales are made accordingly. Since there is no loss in the present year as well as in the subsequent year, there will be no impact of any change method of the book result. In view of the regular method adopted by the assessee in the past and accepted by the department, the method of valuation can not be changed during the assessment year under consideration. No reason has been given by the A.O. for changing the said method. The identical addition in the earlier year was deleted. By considering the totality of the facts ..... X X X X Extracts X X X X X X X X Extracts X X X X
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