9911796707
TMI Blog2017 (11) TMI 462X X X X Extracts X X X X X X X X Extracts X X X X ..... Kedawat with Mr. K.D. Mathur for Mr. R.B. Mathur For the Respondent : Mr. Gunjan Pathak with Ms. Ishita Rawat JUDGMENT 1. By way of this appeal, the appellant has assailed the judgment and order of the tribunal whereby tribunal has partly allowed the appeal of the department and cross objections of the assessee was dismissed. 2. This court while admitting the appeal on 15.9.2016 framed following substantial question of law:- Whether in the facts and circumstances of the case, the ITAT was justified in deleting the addition of ₹ 2,11,29,247/- as made by the Assessing Officer on account of under valuation of stock without appreciating the fact that the assessee could not identify the defective stock and could not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as claimed by the assessee. Moreover on the examination of sales it revealed that all the goods are sold as fresh. During the course of assessment proceedings no such instance was brought to the notice of the undersigned, which shows that the assessee has identified any stock as defective. Moreover there was no defective stock which was maintained in the books of accounts. Therefore it is clear that reduction of the value of closing stock in the shadow of the defective is only adopted with the intention to reduce the tax liability. It is admitted fact that quantity and valuation of the different items of the closing stock have been maintained, as stated above without any basis, the valuations of the stock was reduced in the shad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... opted a different method of keeping account or of valuation. The method of accounting regularly employed might be discarded only if in the opinion of the taxing authorities, income of the trade could not be properly deducted there from. In the case of CIT vs. Fazilka Cooperative Sugar Mills Ltd. (255 ITR 411), the AO made addition on account of revaluation of the closing stock by holding that valuation of the closing stock had to be done on the basis of the average price for the month of March, 1991. 7. We have heard counsel for the parties. 8. Taking into account the principle laid down by the Supreme Court, the CIT(A) has allowed the valuation on the basis of last years which was accepted by the assessee and the same was confirme ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
