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2021 (8) TMI 646 - AT - Income TaxAddition on account of difference in stock - valuation of stock held - method of accounting adopted by the tax-payer consistently - difference was there in the valuation made by the registered valuer of the department who applied the market rate and worked out the total stock of the jewellery different as per books of the account of the assessee - CIT-A deleted the addition - HELD THAT:- The assessee while working out the above difference applied the average price which was followed consistently, whereas the registered valuer of the department applied the market rate for valuation of the closing stock. It is well settled that the method of accounting adopted by the assessee consistently and regularly cannot be discarded.Revenue department undisputedly accepted the average cost price method for valuation of the opening stock for the year under consideration as well as the valuation of the closing stock in the earlier years, therefore, the valuation of the closing stock as on 11/11/2013 found during the course of survey, by applying the market rate was not justified, as such the Ld. CIT(A) rightly deleted the impugned addition made by the A.O. We do not see any valid ground to interfere with the findings given by the Ld. CIT(A). - Decided against revenue.
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