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2013 (12) TMI 1554 - AT - Income TaxValue adopted by the Assessee for part of the stock in accordance with the order of the Hon'ble Bombay High Court - Held that:- Even the stock of iron ore at that time was also divided. The liability arising due to the order of the Hon'ble Bombay High Court, in our opinion, cannot be a business liability as the price realized by the Assessee can also not be the market price but the price put by the Hon'ble Bombay High Court is for the purpose of settling the dispute mutually among the family members and distribute the various assets and liabilities by putting certain value to them. It cannot be regarded to be sale at the open market. If any loss is incurred by the Assessee, that cannot be regarded to have been incurred during the course of the business. Commissioner (Appeals) was not correct in directing the Income-tax Officer to revalue the opening stock also consistently along with the closing stock when the assessee wanted to adopt the “works cost” method for the relevant assessment year. Direction to be given to the assessing officer to take the opening stock of ROM and screened fines for the assessment year 2007-08 in consequence of making an adjustment to the closing stock as on 31.3.2006 - Held that:- Value of the closing stock of the impugned assessment year will become the value of the opening stock of the succeeding assessment year. Since the appeal before us relate to the assessment year 2006-07 our jurisdiction are limited to give the finding in respect of the ground of appeal relating to the impugned assessment year we cannot decide the grievance of the assessee relating to the assessment year 2007-08. This issue can be taken by the assessee during the assessment year 2007-08 in accordance with the law before the appropriate authorities. As we have already confirmed the addition in the valuation of the closing stock for the A.Y 2006-07, we direct the assessing officer to take the same value of the opening stock as on 1.4.2006 for determining the profits and gains of the business of the assessee for computing the taxable income.
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