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2010 (7) TMI 1069 - AT - Income TaxValuation of closing stock of gold jewellery - LIFO or FIFO method - accounting standard - Present appeal is with regard to the valuation of closing stock. the AO had changed the value of closing stock but not that of opening stock. In view of the declaration of additional income by the assessee during survey. it was held that further addition in the year would result in double addition. Accordingly, the AO was directed to delete the addition of ₹ 52,23,753/-. Revenue is in appeal against the said order. HELD THAT:- we find support from the ratio laid down in Chainrup Sampat Ram Vs. CIT [1953 (10) TMI 2 - SUPREME COURT] wherein it has been held that the value of stock cannot be appreciated higher than the cost because the closing stock is not the source of profit for the assessee. In the facts and circumstances of the present case, we are in conformity with the order of CIT(A) and uphold the same. There is no merit in adopting the weighted average cost method for valuation of inventory of stock in the circumstances of the case. We confirm the deletion of addition made by the AO totaling ₹ 52,23,753/-. The ground of appeal raised by the Revenue is thus dismissed
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