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2015 (10) TMI 1872 - AT - Income TaxValuation of closing stock - CIT(A) allowing of claim of the assessee as the part value of the opening stock of finished goods on 1.04.2002 - Held that:- The figure of the value of the opening stock of finished goods of last year is not disputed. There can be no dispute on the proposition that the value of closing stock of preceding year constitutes value of opening stock of the current year. Under no circumstances there can be any difference between the value of closing stock shown in the accounts of preceding year and the value of opening stock of the current year. Though the reflection by the assessee of ₹ 33.91 lac in its P & L Appropriation account is an erroneous approach of showing the value of opening stock, which amount should have been in fact, considered in entirety in the trading account, but such an erroneous accounting treatment cannot impact the calculation of correct total income. In our considered opinion the ld. CIT(A) was justified in enhancing the value of opening stock of finished goods with ₹ 33.91 lac and thereby reducing the total income to this extent. We therefore, countenance the view taken by the ld. CIT(A) on this issue. - Decided against revenue.
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