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2005 (8) TMI 91 - ALLAHABAD HIGH COURTClosing stock – change in method of valuation - "Whether the Tribunal was legally correct to uphold the addition made to the closing stock valuation and to reject the method of valuation adopted by the assessee to average cost instead of the market value?" - there appears to be no proper reason for the assessee to change the method of valuing the closing stock. Admittedly, in all the previous years, stock was valued at the market rate. It appears that with intent to reduce the profit, the assessee had changed the method of valuation and adopted the average cost rate, which resulted in the reduction of income. All the authorities below found that the change in the method of valuation was not bona fide, but was only to reduce the income. In the circumstances, we do not find any error in the order of the Tribunal.
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