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2013 (1) TMI 67 - HC - Income TaxMethod adopted in reporting the discounted value of raw material, components and consumable stores - “cost or net realizable value, whichever is less" - Tribunal disapproved method as adopted by assessee - Held that:- There is no dispute that the principle “cost or net realizable value, whichever is lower” is an accepted method of valuation of inventory. There is also no dispute that AS-2 issued by the ICAI are binding on both the assessee as well as the tax authorities under Section 145. Write off factor of 8.5% has not been proved by the assessee - Held that:- The figures which are set out by the assessee in Annexure G show how the assessee arrived at the write off factor. These figures have to be verified by the AO. While therefore holding that the Tribunal was not right in accepting the revenue’s contention in principle, AO is directed to verify the figures furnished by the assessee in support of the write off factor of 8.50% and complete the assessment afresh on this limited issue - in favour of assessee subject to the remit order passed.
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