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2011 (12) TMI 243 - HC - Income TaxValuation of closing stock - method of accounting consistently followed by assessee – Revenue contending suppressed valuation of closing stock – Held that:- In case of CIT vs British Paints India Ltd (1990 - TMI - 5324 - Supreme Court) it was held that the system of accounting regularly employed by the assessee, the correctness of which has not been questioned in the past, is not a ground to permit the assessee to continue with the valuation method. In present case, assessee has not taken into consideration actual manufacturing expenses while valuing the closing stock. Stock has been valued at cost plus Rs.100/- per ton for the last 15 years. Such method of valuation has not found favour with the Hon’ble Supreme Court in the aforesaid case. - Decided in favor of Revenue.
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