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2012 (8) TMI 462 - HC - Income TaxMethod of valuation of closing stock - assessee consistently following method of taking cost or market price whichever was lower - revenue seeks to arrive at value of the closing stock by adopting an average method by valuation while the assessee seeks to arrive at the valuation of closing stock on the basis of quality of the stent and its costs as available on actual basis - Held that:- In the present case, assessee has adopted the method of valuing stock which gives the value of the closing stock depending upon the quality of the stents which are in its possession. The method adopted by the revenue of seeking to multiply the number of stent with the average costs by stents in the possession of the respondent would lead not only to estimated cost of closing stock but also distort the profit and/or loss obtained. This is so as the method employed by the revenue completely ignores the valuation of the individual stent. Therefore, on merits, we find no fault with the method adopted by the assessee of valuing closing stock which has been upheld by the CIT(A) and the Tribunal - Decided in favor of assessee.
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