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2017 (7) TMI 1363 - AT - Income TaxBonus redemption expenses addition - liability incurred by the assessee was in the nature of contingent liability and fully dependent upon the uncertain future visit and option of the customers and is not a know liability - CIT deleted the addition - HELD THAT:- As decided in own case [2017 (8) TMI 361 - ITAT CHENNAI] we do not find any merit, the assessee has provided the liability as soon as the first customer made first purchase, 1% of the first purchase value and liability to give discount to the customer accrued as soon as the first purchase was made. The only passing of discount to the customers is only at second purchase. The assessee is legally bound to pass the reward or discount to the customer as soon as the first purchase was made and if the customer does not make claim for such a discount, the accrual liability not stopped, the assessee is bound to honour its claim. Being so, the quantification of such liability is already determined. There is no dispute regarding quantification of such liability. Case of Bharat Earth Movers Vs. CIT [2000 (8) TMI 4 - SUPREME COURT] is directly applicable to the facts of the present case. Accordingly, we have no hesitation in confirming the order of the CIT(Appeals) on this issue. Hence, this ground of Revenue stands dismissed. Addition towards valuation of closing stock - HELD THAT:- As decided in own case [2017 (8) TMI 361 - ITAT CHENNAI] assessee has valued the unsold stock by discounting purchase price at fixed percentage considering the age of the stock. However, this method of reduction is not following year by year - There is no explanation for such kind of arbitrary reduction of either 25% or 50%. There is no consistency in the method followed by the assessee for valuing the closing stock. The closing stock is to be valued at market price or cost whichever is less and that should be consistent from year to year - assessee is not disputed that it has been followed the same method. Consequent to search action, the assessee wanted to change the method of stock valuation for the first time, which is nothing but an afterthought so as to reduce the income which cannot be permitted at this point of time. - Decided against assessee.
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