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2012 (6) TMI 179 - HC - Income TaxValuation of stock valuation of stock at less than average price - 50% stock of marble slabs and marble tiles was considered to be fresh and balance 50% was considered to be of inferior quality - Stock that was considered to be of inferior quality was valued at 25% rate of value applied for fresh stock. - This, according to assessing officer, was without any basis AO rejected books of accounts and valued the stock at average rate CIT reduced addition - revenue preferred appeal before ITAT and assessee filed cross-objections Held that:- FIFO method of valuation can be followed only when items purchased/manufactured are identical in nature while in the case of assessee there is sizable difference in the valuation for block to block, slab to slab and tiles to tiles. - valuation method if adopted, it has to be followed consistently and entire stock could not be sold at same price and obviously at the time of sale when the buyer picks up the best available stock then the assessee is entitled to value part of the stock at reduced price particularly when it has also proved that the same was sold in immediate succeeding period at a lesser rate fixed from best of the stock. No question of law arise, appeal dismissed
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