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TMI Blog2021 (7) TMI 848X X X X Extracts X X X X X X X X Extracts X X X X ..... ch 2016 on the following substantial question of law : "Whether on the facts and in circumstances of the case and in law, the ITAT was justified in sustaining addition of Rs. 3,02,29,477/-, without appreciating that the valuation of closing stock has to be done on the basis of cost or market price, whichever is lower and for determining the market price for this purpose, the relevant price is the price as on 31st March and not the average price for the entire year? 3. This appeal pertains to the assessment for the Assessment Year 2009-2010. The Assessing Officer vide his order dated 29.11.2011, disallowed the loss of Rs.3,02,29,477/- claimed by the Appellant-Assessee in the stock valuation and added the same to the total income of the As ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... anding Counsel, defends the impugned orders based on the reasoning reflected therein. She submits that pure findings of facts have been recorded by the three authorities and this is not a case of perversity in the record of such finding of facts. She submits that the Assessee wishes this Court to re-assess this material on record, which exercise this Court while exercising second appellate jurisdiction should normally decline. She submits that no evidence was produced by the Assessee to justify the significant variation in the cost price and the alleged market price. For all these reasons, she submits that this appeal is liable to be dismissed. 7. The rival contentions now fall for our determination. 8. At the outset, we must note that fr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt in the ITAT order dated 14.09.2015, which is again not backed by any ground in the memo of appeal, we cannot accept that the substantial question of law now raised, was effectively raised and adjudicated before the earlier authorities. In such circumstances, the substantial question of law though framed, cannot be said as arising in this Second Appeal. 11. Be that as it may, the Assessing Officer, the CIT (Appeals), and ITAT have recorded pure findings of fact. Such findings of fact cannot be interfered with in a Second Appeal unless a case of perversity is made out. At this stage, it is not for this Court to re- assess or re-appreciate the material on record, only to find whether some different view is possible. All the authorities, ba ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... produced on record by the Assessee, the Assessing Officer was justified in determining the market price, having regard to the market rate in the course of the assessment year. 14. In the present case, the Assessee, apart from submitting an unsigned chart, allegedly based on the books of account maintained by the Assessee, had failed to produce on record any material in support of the substantial variation between the cost price and the market price. In such a situation, there was nothing wrong with the approach of the Assessing Officer and the determination ultimately made by the Assessing Officer. 15. In British Paints India (supra), the Hon'ble Supreme Court has held that : "Section 145 of the IT Act confers sufficient power upon ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be deduced therefrom. It was, therefore, not only the right but the duty of the Assessing Officer to act in exercise of his statutory power, as he has done in the instant case, for determining what, in his opinion, was the correct taxable income. The Tribunal's order, affirming that of the Assessing Officer, was based on findings of fact made on cogent evidence and in accordance with correct principles. The High Court was clearly wrong in interfering with those findings. Accordingly, the judgment of the High Court was to be set aside." 16. According to us, the aforesaid observations in British Paints India (supra), assist the revenue in this matter. 17. For all the aforesaid reasons, we dismiss this Appeal by holding that subs ..... X X X X Extracts X X X X X X X X Extracts X X X X
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