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TMI Blog2024 (8) TMI 933X X X X Extracts X X X X X X X X Extracts X X X X ..... concerned, for each year the market price of a particular goods may change and therefore, the value of the stock would also accordingly change and the same even for the same amount of stock, valuation will have to be different. In the present case, the valuation of stock has changed on account of the change in market price as well as change in the sale price, the average market could not have been taken up by the Assessee because the sale price of goods could not change in every year. Keeping in view the above, we are in agreement with the view taken by the A.O. and affirmed by the ITAT and answer question No. (i) in favour of respondent-revenue. Method of valuation of stock - We find that the decision of CIT vs. British Paints India Ltd [ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hereinafter referred as the ITAT ), in its order dated 27.09.2011, has found that the Assessing Officer (A.O.) had reached to the conclusion that the closing stock has been undervalued by showing item purchased by the Assessee at lower rates. Market price of such items was found @ Rs. 26,500/- while the assessee had himself sold the same at the price of Rs. 23,478/-. Accordingly, the A.O. valued the closing stock of 391.190 MT @ Rs. 23,478/- as on 31.03.2007 @ Rs. 91,84,351/- against the declared amount of Rs. 73,15,253/-. The same was added to the incurred income of the Assessee and accordingly the tax amount was enhanced. 3. It is the submission of the learned counsel for the applicant appellant that the CIT(Appeals) had examined the orde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rice on which the goods had been sold by the Assessee. If the market rate assessment is done, the tax effect could have been much more i.e. on the basis of amount of Rs. 26,500/-. While considering the sale price of goods by the Assessee @ Rs. 23,438/-, the A.O. has arrived at the value of stocks to be Rs. 91,84,358/-. 6. We are of the firm view that so far as the principle of consistency and validity of method of valuation is concerned, the same would remain same for different assessment years. However, so far as the valuation is concerned, for each year the market price of a particular goods may change and therefore, the value of the stock would also accordingly change and the same even for the same amount of stock, valuation will have to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ue. 9. As regards question No.(ii) framed by this Court for adjudication, we find that the decision of CIT vs. British Paints India Ltd.; (1992) Supp. (1)SCC 55 has laid down the method of valuation of stock, considering the facts and circumstances of the said case alone and would therefore not be a binding precedent in all cases as noticed above. The sale price of goods having not changed every year, the method of valuation of stock cannot be applied in the same manner as held in CIT vs. British Paints India Ltd. (Supra). We accordingly answer question No. (ii) in favour of the respondent/revenue. 10. In view of the aforesaid, the Appeal is dismissed. 11. All pending applications filed in this case shall stand disposed of accordingly. - ..... X X X X Extracts X X X X X X X X Extracts X X X X
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