9911796707
TMI Blog1999 (8) TMI 41X X X X Extracts X X X X X X X X Extracts X X X X ..... the case, the Income-tax Appellate Tribunal had erred in law in not entertaining and disposing of on merits the additional ground sought to be raised by the assessee that the surtax payable was an allowable deduction in the computation of income for the purposes of income-tax ? 2. Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was correct in law in allowing the assessee's claim of loss of Rs. 5,28,475 arising out of revaluation of slow moving raw material at estimated realisable value ? 3. Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was correct in law in holding that in computing the capital under rule 19A of the Income-tax Rules, 1962, borrowed capital was not e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... items and may not even fetch the cost price, the assessee valued these items at estimated realisable value, thereby claiming a trading loss of Rs. 5,28,475 in this process. The said claim was, however, disallowed by the Assessing Officer on two grounds, namely, (i) that there was no scientific basis adopted for the revaluation of the goods, in question ; and (ii) the assessee having followed the method of valuation at cost or market value, whichever was lower, it could not be permitted to change it at its sweet will, as the method once chosen should have been followed consistently. Being aggrieved, the assessee preferred an appeal to the Appellate Assistant Commissioner. Relying on certain instances, it was pleaded by the assessee before t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ras High Court in the case reported in K. Mohammad Adam v. CIT [1965] 56 ITR 360, laid down that the assessee has a right to value his closing stock at cost price or market price, whichever is lower. The court further held that where the goods are saleable only in certain foreign markets, the assessee is entitled to value them at 'nil' and that he is not bound to show that he had made efforts to sell the goods in other foreign markets or in the local market, before valuing the stock at 'nil'. The same principle applies to the present case also. The assessee found that certain goods could not be sold even at the cost price. It, therefore, valued them at their estimated realisable value obviously because there was no market for them and the m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... In the instant case, according to the statement of the case drawn up on the basis of the appellate order of the Tribunal, extracted above, it has been found by the Tribunal that the change in the method of valuation adopted by the assessee was bona fide and the same method was followed by it subsequently. The Appellate Tribunal being the final fact-finding authority under the Act, this court in the exercise of its advisory jurisdiction can neither go behind the facts stated by the Tribunal nor can disturb the same unless a challenge is provided specifically by a question framed in a reference against the validity of the impugned findings of fact on the ground that there is no evidence to support them or they are the result of a misdirection ..... X X X X Extracts X X X X X X X X Extracts X X X X
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