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2016 (10) TMI 1243 - AT - Income TaxAddition on undervaluation of closing stock - raw material was valued at lower of cost or market price and finished goods was valued at lower of estimated cost or market price - whether assessee deliberately undervaluing stock by following LIFO method of valuation of gold stock and proposed FIFO method of valuation of stock of gold to be appropriate for valuation of gold stock? - Held that:- We find that the observation of the Coordinate Bench that the AO did not give any justifiable reason for rejection of LIFO method which has been followed consistently by the Assessee and which method the Revenue has been accepting for earlier years. Decision of Cochin Tribunal in the case of jeweler in ITO vs Sree Padmanabha Jewellery Mart [1986 (8) TMI 120 - ITAT COCHIN] as relied by the Assessee wherein it approved the LIFO method. The Coordinate bench also discussed the decision of DCIT vs Vipin Aggarwal [2010 (7) TMI 1069 - ITAT CHANDIGARH] which found no merit in not adopting the method of valuation of stock being consistently followed by the assessee which is being accepted from year to year in the absence of any contrary findings by the Assessing Officer. We hold that no addition is maintainable made on account of value of closing stock and the order of the CIT-A is justified and the grounds raised are dismissed. - Decided in favour of assessee.
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