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2013 (3) TMI 171 - AT - Income TaxValuation of stock - non moving stock - identification of nonmoving items - held that:- if the method of valuation adopted by the assessee is a recognized method, the same cannot be disregarded on mere technicalities. - consistency in the method applied by the assessee is fairly emerging. - in the case before the Hon’ble High Court of Rajasthan in the case of Wolkem India Ltd. (2009 (1) TMI 241 - RAJASTHAN HIGH COURT), the valuation of unusable and non-moving items on account of obsolescence at 5% of the cost on estimation has been found to be reasonable. Since the non-moving items added to the closing stock during the year is only 19,28,259/-, the Assessing Officer shall be justified to put such working for further verification and examination. For examination of this aspect, matter remanded back to AO. - Decided in favor of assessee.
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