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2009 (9) TMI 31 - HC - Income TaxChange in method of valuation of closing stock – deduction of interest u/s 36(1)(ii) – contingent liability or a crystallized liability – Held that the change in the method of valuation of the closing stock was not bona fide for the A.Y. in question seeking of change in the method of valuation of the closing stock was in the year where there were huge rise in the profits of the assessee company and the change was adopted in order to reduce profits in the relevant year – Interest accrued upto 31.3.1991 but payable from 1996 to 2000 - interest cannot be said to have accrued to become due and payable in the relevant P.Y. interest cannot be said to have accrued to become due and payable in the relevant previous year – disallowance of interest u/s 36(1)(ii) read with S. 43B(d) upheld - Once this issue was alive and pending and the appellant company could have succeeded in the Special Leave Petition in the SC, clearly, the liability remained contingent and could not be said to have been crystallized – assessee’s petition dismissed
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