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2015 (8) TMI 1376 - AT - Income TaxValuation of closing stock of low grade iron ore - Held that:- Commissioner of Income Tax (Appeals) has deleted the addition made by the Assessing Officer by following the order of this Bench of the Tribunal in assessee’s own case in assessment year 2004-05. Since the assessee has consistently following the method of accounting and no such addition has been made in earlier years, even though the assessee is in the business for so many years, we are not persuaded by the contention that the assessee would get benefit of opening stock in the following year. In fact the correct procedure which could have been followed by the A.O. is to consider the amount of opening stock of low grade iron ore also while bringing to tax the entire stock available, which might have been produced over a period of many years, in the closing stock of this year which certainly distort the profits of this year. Since we are not in agreement with the addition of closing stock of unrealisable low grade iron ore, we have no hesitation in deleting the addition so made by the A.O. Accordingly the grounds raised in the cross objection are considered allowed A,O. is directed to delete the addition. - Decided in favour of assessee.
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