Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2017 (3) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (3) TMI 92 - HC - Income TaxValuation of opening and closing stock of the raw material (Tendu leaves) - method of valuation - whether the 'average price principle' could not have been applied? - Held that:- We do not find any force in the submissions made on behalf of the Revenue for referring the questions of law as stated in the application, under Section 256 (2) of the Act for a decision. The assessee is engaged in the manufacturing and sale of Bidis. It is not disputed that the assessee has branches and sub-branches at several places and the raw material, that is Tendu leaves is stored by the assessee in godowns in the places where the branches and the sub-branches of assessee are located. Tribunal found that during the last years where the said method of accounting had affected the assessee, the assessee did not change the method of valuation and even the Revenue did not point out the said fact to the assessee. The Tribunal rightly held that merely because the change of the method would help the Revenue in a particular year, the Assessing Officer is not at liberty to change the method of valuation that was followed by the assessee for a considerably long period. In the instant case, the assessee has not claimed that he was adopting the method of 'last in and first out' and the assessee had stated that it was possible for some time, in view of the practical difficulty that the Tendu leaves purchased subsequently could be utilized first and vice versa. The finding of facts recorded by the Tribunal do not give rise to any substantial question of law. - Decided against revenue
|