2003 (1) TMI 8 - SC - Income Tax

Is it permissible for the AO under the Income-tax Act to adopt different methods of valuation of excise duty paid raw material when purchased and the unconsumed raw material on hand at the end of the year - view of the AO that merely because Modvat credit is an irreversible credit available to the manufacturers upon purchase of duty paid raw material, it would amount to income which is liable to be taxed under the Act, is not acceptable