9911796707
TMI Blog2016 (2) TMI 307X X X X Extracts X X X X X X X X Extracts X X X X ..... nnot be applied. The Assessing Officer estimated the valuation of such on stock on average purchase price. It can thus be seen that the question of valuation of stock was one of the prime aspects, the Assessing Officer examined during the original assessment. That being the situation, any attempt on part of the Assessing Officer now to reopen the assessment on the question of correct methodology for valuation of such stock would only be in the nature of change of opinion and not permissible as reiterated by the Supreme Court in case of Commissioner of Income Tax v. Kelvinator of India Ltd. reported in (2010 (1) TMI 11 - SUPREME COURT OF INDIA ) - Decided in favour of assessee - SPECIAL CIVIL APPLICATION NO. 14884 of 2015 - - - Dated:- 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g market price of gold (Rs1730 per gm) and diamond at ₹ 20,000 per carat as on 3/2/2010. It was seen from the page 5 if survey report that the above findings was confronted to the assessee in his statement on oath during survey, which was admitted by the assessee and has agreed to pay tax on the same. However, as per the survey report, the assessee has requested to value the excess/unaccounted stock on average purchase price at ₹ 1326 per gram instead of market value of stock as on the date of survey. The value of excess/unaccounted stock on average purchase price was worked out at ₹ 3,50,53,922/. Subsequently as per Sr No 11 of Notes on AccountSchedule 18, the assessee had disclosed income of ₹ 3,51,00,000/. The val ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... k was not available and in the absence of the same, the valuation was required to be made at prevailing market price(i.e. ₹ 1130/per gram). For instance, considering that during the year under consideration, the assessee might have purchased the unaccounted stock of ornaments along with the accounted stock, the valuation was required to be made at bare minimum of 1528.842 per gram and ₹ 1590.383 per gram for 22 carat gold jewellery and 24 carat gold respectively,if not at prevailing market price of 1130 per gram. Thus the valuation adopted to take average purchase price seems to be incorrect and cannot be relied on. As the details in respect of unaccounted purchases were not on record, the valuation of the inventory was required ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the issue of valuation of stock had been examined at length. We may recall that the assessee is engaged in the business of jewelery. During a survey operation conducted on 3.2.2010, unaccounted cash was found and difference in stock in the books and physical verification were revealed. During the assessment proceedings, there was considerable debate about the valuation of the stock in the nature of jewelery. The assessee contended that much of the stock may be old and that therefore, current price cannot be applied. The Assessing Officer estimated the valuation of such on stock on average purchase price. 5. It can thus be seen that the question of valuation of stock was one of the prime aspects, the Assessing Officer examined during the ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
