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2014 (12) TMI 13 - PUNJAB & HARYANA HIGH COURTValuation of finished goods at port - Whether the Tribunal was right in directing to work out the value of finished goods lying at port on the basis of average cost – Held that:- The Tribunal was rightly of the view that the AO is duty bound to examine as to whether the method of valuation as adopted by the assessee has been regularly followed or not and as to whether the correct profits and gains could be deduced from the accounts maintained by following the said method - the assessee has regularly followed the method of valuation of stock on the basis of average cost - there is no specific finding by the AO that the profits cannot be correctly deduced on the basis of the method of valuation followed by the assessee - The provisions of section 145 have not been specifically invoked - CIT(A) has rightly held that in the case of cotton yarn average weighted cost of closing stock may be taken and the valuation of closing stock should be worked out on the basis of weighted monthly cost - the method of valuation of closing stock of raw material has been accepted by the assessee – the order of the Tribunal is upheld – Decided against revenue. Admissibility of deduction u/s 80I on duty drawback – Receipts attributable to conduct of any manufacturing activities of assessee or not – Held that:- Following the decision in M/s Liberty India Versus Commissioner of Income Tax [2009 (8) TMI 63 - SUPREME COURT] - the duty draw back would not form part of net profit and no deduction u/s 80I of the Act was admissible – Decided in favour of revenue.
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