9911796707
TMI Blog2003 (4) TMI 70X X X X Extracts X X X X X X X X Extracts X X X X ..... in holding that the method of valuation of closing stock followed by the assessee was justified?" The facts which have given rise to this application are that the assessee was assessed for the year 1991-92. During the assessment year the assessee had consumed 66,14,484 pudas of "tendu" leaves valued at Rs. 62,47,554. The cost price per thousand bundles for the opening stock was Rs. 64,429. The purchase during the assessment year in respect of one thousand bundles amounted to higher than the price which was reflected in the opening stock. The assessee adopted the average method by taking out the mean and showed Rs. 891.33 in respect of Mehdiwala branch and Rs. 951.54 in respect of Sihora branch and similarly the mean was shown in respect of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ccepted the mean adopted by the assessee. Thereafter an application was preferred under section 256(1) of the Act for referring the question to this court. However, the Tribunal expressed the view that no referable question of law did arise and accordingly it declined to refer the same. We have heard Mr. Rohit Arya, learned counsel for the petitioner, and Mr. A.P. Shrivastava, learned counsel for the assessee. Mr. Arya has placed reliance on the decision rendered in the case of British Paints India Ltd. [1991] 188 ITR 44 (SC) and referred to paragraphs 21 and 22 of the said judgment. The submission of Mr. Arya is that the method adopted by the Assessing Officer is absolutely sound for the purpose of assessment. It is also put forth by him ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ers and ascribing reasons accepted the method adopted by the assessee. In the case of Bindal Jewellers [2002] 257 ITR 777 (Raj), the Division Bench was in seisin of the question. The Bench while dealing with similar question expressed the view that on the basis of the material brought on record the value may differ from place to place with different person and the value of the closing stock cannot be mathematically calculated. The money value attributed to the stock should be decided and estimated by the concerned authority in a reasonable and judicial manner on the basis of the facts and circumstances of the case available before him. If the aforesaid decision is appreciated it is crystal clear that a reasonable view has to be given accept ..... X X X X Extracts X X X X X X X X Extracts X X X X
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