2006 (4) TMI 54

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..... o be raised for the purpose of this appeal are as follows : (1) Whether the non-mention of section 145 in the order of the Assessing Officer vitiates the action by the Assessing Officer ? (2) Whether the question of undervaluation of the closing stock can be examined by the Assessing Officer under the Income-tax Act ? (3) Whether the valuation of closing stock and consequent return under the U. .....

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..... 695. The Gujarat High Court in turn relies upon certain decisions of the Supreme Court, namely: (1) Chainrup Sampatram v. CIT [1953] 24 ITR 481 and (2) Sakthi Trading Co. v. CIT [2001] 250 ITR 871. 5 We are unable to read any of the aforesaid two decisions of the Supreme Court or the decisions of the Gujarat High Court to mean that valuation of closing stock can be done at the arbitrary whim of .....

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..... y a finding of fact recorded on the appreciation of evidence. We do not find any defect in approach of the authority especially because of not tendering any evidence from the appellant's side to show that the market value was lower. 8 For the third proposition learned counsel for the appellant has relied upon a decision of the Madras High Court hi CIT v. Anandha Metal Corporation [2005] 273 ITR 2 .....

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