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2015 (10) TMI 946 - HC - Income TaxAddition towards valuation of closing stock - ITAT deleted the addition accepting the plea of the Assessee that it has been consistently following "the method of valuation of closing stock of levy sugar at its two factories at the market rate and valuation of the closing stock of the free sale sugar and Deoband unit at cost price and that of the Ramkola unit at market price" - Held that:- The Court finds that the Assessee was under a compulsion to maintain separate books for the supply of levy sugar to the Government and had consistently adopted different systems of valuation of the closing stock of levy sugar and free sale sugar manufactured at its two units. The closing stock as well as the opening stock would reflect this dual system of valuation followed by the Assessee and the net tax effect would be revenue neutral. Consequently, the Court agrees with the ITAT that there was no justification for the AO to have rejected the valuation of the closing stock of sugar as adopted by the Assessee. The addition made by the AO was rightly deleted by the ITAT. The question is answered in the affirmative i.e. in favour of the Assessee
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