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TMI Blog2014 (7) TMI 687X X X X Extracts X X X X X X X X Extracts X X X X ..... ly two opinions - where the business continued, the valuation of the closing stock would have to be determined either at cost price or market price, whichever is lower - decision passed by the Tribunal based on an earlier decision of the Supreme Court is a mistake apparent from the record and consequently a rectification application u/s 254(2) is maintainable - the Tribunal was justified in passing the order u/s 254(2) of the Act – Decided against Revenue. - Income Tax Appeal No. - 127 of 2002 - - - Dated:- 3-7-2014 - Hon'ble Tarun Agarwala And Hon'ble Mahesh Chandra Tripathi,JJ. For the Appellant : A. N. Mahajan, S. Chopra For the Respondent : R. R. Agrawal, Suyash Agarwal ORDER We have heard Sri Shambhu Chop ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urt in A.L.A. Firm's Vs. Commissioner of Income Tax in 189 ITR 285, in which it was held that if the partnership is dissolved, the valuation of the closing stock has to be valued at market price. The assessee being aggrieved filed an application under section 254(2) of the Income Tax Act for rectification of the mistake contending that there was apparent on the face of the record. During the pendency of this application, the Supreme Court delivered a decision in Sakthi Trading Co. Vs. Commissioner of Income Tax (2001) 250 ITR 0871 holding that where the business continued and the firm was reconstituted, the valuation of the closing stock would have to be determined at cost price or market price, whichever is lower. In the light of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /the 1961 Act would be in order. It has, therefore, been decided that where an assessee moves an application under section 154 pointing out that in the light of a later decision of the Supreme Court pronouncing the correct legal position, a mistake has occurred in any of the completed assessments in his case, the application shall be acted upon, provided the same has been filed within time and is otherwise in order. Where any such applications have already been rejected and the assessee files fresh applications within the statutory time limit, the same may also be treated on par with the applications which may either be pending or received after the issue of this circular. 2. The Board desire that any appeals or references pending on the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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