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2015 (12) TMI 1067 - HC - Income TaxAddition made u/s 145(3) on account of valuation of closing stock - ITAT deleted the addition - whether invoking of provisions of Section 145(3) were validly invoked as the assessee had valued the closing stock on LIFO basis as per his previous practice? - Held that:- We do not find any merit in the appeal. The assessee is engaged in the business of sale and purchase of jewellery. The Tribunal had noticed that the assessee was following LIFO method for valuing its closing stock from year to year which is one of the prescribed methods of accounting standards issued by the Institute of Chartered Accountants of India for valuation of inventory. The said method was also followed by the assessee in the assessment year 2007-08 and in the said year, the Assessing Officer had made an addition of ₹ 32,08,977/- on account of valuation of closing stock of gold ornaments. The Tribunal relating to the assessment year 2007-08 in the case of the assessee upheld the decision of the CIT(A) deleting the addition made by the Assessing Officer as on the basis of the doctrine of consistency in relation to method of calculation of inventory as also the decision of the jurisdictional High Court in assessee's own case, recorded findings in favour of the assessee.
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