2008 (12) TMI 34

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... valued, so that the income can be correctly arrived at - CIT (A) &ITAT were right in directing AO to re-compute the income by adopting value of closing stock at cost or market price whichever is lower – revenue’s appeal dismissed - 703 of 2008 - - - Dated:- 22-12-2008 - ADARSH KUMAR GOEL and L. N. MITTAL JJ. Ms. Urvashi Dhugga, Standing Counsel for the Revenue. JUDGMENT [ADARSH KUM .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... method of valuation of stock ? 2. Whether on the facts and in the circumstances of the case, the ITAT was legally justified in accepting the closing stock as declared in the revised return ignoring the fact that the provisions of section 139(5) of the Act permits revising of return only if there was any omission or wrong statement in the original return and that the said section does not permit .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... d in response to that have been accepted income has been taken from the said revised return. Moreover, it is an accounting principle that opening closing stock has to be valued on the same basis. The Assessing Officer is not permitted to adopt the closing stock valuation from the original return without varying the opening stock. The profit during the year should be accepted on the basis of .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X