The case involves a challenge to the amendment in Section 145A, ...

Court Allows LIFO or FIFO for Stock Valuation Amid Section 145A Amendment Challenge, Quashes Certain Notices.

May 30, 2024

Case Laws Income Tax HC

The case involves a challenge to the amendment in Section 145A, making it mandatory to adopt FIFO or weighted average cost method for valuing closing and opening stock. The court held that prior to the amendment, there was no mandatory provision for a specific valuation method. The Parliament made Clause 16 of ICDS (II) mandatory for all assesses, ensuring uniformity in accounting. The court emphasized that the method used for valuing opening and closing stock must be consistent. The retrospective amendment in Section 145A aims to provide relief to assesses who adopted FIFO in the Assessment Year 2017-18. Assessors following LIFO consistently are not required to switch to FIFO for that year. The court partly allowed the writ petitions, quashing the notices and allowing assesses to value stocks using LIFO or FIFO methods for the relevant assessment year.

View Source

← Previous Next →

The case involves a challenge to the amendment in Section 145A, ...

Court Allows LIFO or FIFO for Stock Valuation Amid Section 145A Amendment Challenge, Quashes Certain Notices.

May 30, 2024

Case Laws Income Tax HC

You may also like:

Constitutionality and legality of Income Computation and Disclosure Standards (ICDS) II and Notification 87/2016, which mandate the use of the First In First Out (FIFO)...

Difference in stock valuation - valuation of the closing stock - LIFO or FIFO method - It is an admitted case that the assessee has been continuously adopting the LIFO...

Excess stock found during the search - A.O. has not held that there was any difference in quantity of stock as per valuation report and as per hooks of accounts. There...

The High Court allowed the petition and quashed the impugned order rejecting the petitioner's refund application for unutilized input tax credit. The court held that the...

Under valuation of closing stock of rice - improper maintenance of stock register by the assessee-firm - the method of valuation was adopted by the Ld. AO in closing...

Excess stock found during survey triggered initiation of proceedings against petitioner. Court held if excess stock found, proceedings u/ss 73/74 of GST Act should be...

Penalty U/s. 271(1)(c) - claim of exemption u/s 10(38) whereas sale of shares was not through stock exchange - company adopted LIFO method where as AO adopted FIFO...

Provision for impairment of stocks - method of valuation of stock - inventory consisted of old/used stock which was categorized as defective, but, repairable stock and...

Addition on valuation of closing stock - excise duty on closing stock of its finished goods - exclusive VS inclusive method - although the method of valuation of stock...

The Delhi High Court examined the constitutional validity of an amendment in the Income Tax Act, 1961, specifically u/s 31 of the Finance Act, 2017. The petitioner...

Valuation of closing stock - There is no any purchase by the assessee during the year, and the sale made by the assessee is out of opening stock only. In the closing...

The High Court considered a case involving the effect of a retrospective amendment in Section 50 of the CGST Act, 2017 by the Finance Act, 2021. The petition was...

Securities and Exchange Board of India (Stock Brokers and Sub-Brokers) (Amendment) Regulations, 2002.

Banks are required to maintain a Statutory Liquidity Ratio (SLR) by purchasing government securities. RBI guidelines categorize securities as Held-to-Maturity (HTM),...

Shares converted into stock-in-trade - Valuation adopted for conversion of investments to stock-in-trade, opening stock and closing stock - where an assessee converts...

Quick Updates: