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2017 (10) TMI 384 - HC - Income TaxChange of principle for stock valuation - argument raised is that method adopted on opening stock should be followed in closing stock - Held that:- There is some fallacy in this argument for the reason that normally method of opening stock is same as it was for closing stock of previous year. If accounting system is to be changed obviously it has to be changed from opening stock of the year onward and that is what has been done in the case in hand. Therefore, it cannot be said that whatever method followed in opening stock that has not been followed in closing stock. Method of previous year cannot be applied otherwise there would be no case or in no circumstances accounting method can be altered and indirectly a bar will be created for Assessee for changing his method of accounting, though with development of system, new and well recognized methods in commercial circle are being introduced and adopted regularly. Revenue then contended that there is some error in mentioning of stock valuation with respect to Assessment Year in question and Previous Year and he shows that figures have been mentioned in reverse, but that being a factual mistake and can always be got rectified by moving application before appropriate authority. This does not give rise to a substantial question of law.
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