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2014 (3) TMI 333 - AT - Income TaxNon-inclusion of demurrage charges – Valuation of closing stock – Charges to be included as an element of cost u/s 145A of the Act or not – Held that:- The AO having adopted the same method of valuation for the closing stock, i.e., as for the opening stock, being in fact consistently followed, the question of validity of the revision by the assessee arose for consideration – Relying upon Commissioner of Income-Tax Versus British Paints India Limited [1990 (12) TMI 2 - SUPREME Court] - determination of correct profit would require proper valuation of inventories, both as at the beginning as well as the end of the relevant accounting period - This is also in essence the rule of the non obstante provision of section 145A, since statutorily mandated. The issue is legal, and goes to the root of the matter - The same would accordingly get decided on the basis of legal precedents, including an analysis - The issue arising directly out of our decision validating the change by the assessee, having not been dealt with by the CIT(A) - who in fact approved the change in the first instance, with no specific arguments in the matter having also been made – thus, the matter remitted back to the CIT(A) for adjudication – Decided in favour of Revenue.
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