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2017 (3) TMI 256 - HC - Income TaxAddition on account of valuation of stock of levy sugar at the rates applied for valuation of levy free sugar - Held that:- This stock of levy sugar could then not have been valued at free sale sugar price in view of the fact that there was a legal obligation on the assessee to supply the such stock of sugar at the controlled levy price through the Public Distribution System. For the purpose of valuation of the stock it was relevant to examine whether the assessee was under an obligation to provide for levy sugar. This fact has been duly established by the assessee through evidence led both before the CIT appeals as also tribunal that has specifically referred to such evidence. In view of the above, the questions of law raised in the memo of appeal are answered, against the revenue and in favour of the assessee i.e. in absence of any dispute as to the total stock of sugar and the closing stock of sugar the tribunal was not in error in accepting the value of closing stock of levy sugar in view of the assessee being under an obligation to supply levy sugar.
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