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2015 (11) TMI 1294 - AT - Income TaxAddition on account of valuation of closing stock by following FIFO method - Held that:- The Assessing Officer made addition on account of valuation of closing stock by following FIFO method which is one of the accepted methods of valuation of closing stock. The appellant had adopted inconsistent stand, on one hand he submits that he was following FIFO method, and on the other hand he submits that he followed weighted average cost method. In the Tax Audit Report, it was stated that cost or net realizable value was adopted. The principle of lower of cost or net realizable value is also one of the methods adopted for the purpose of valuing closing stock. In the light of this different stand taken before the Assessing Officer, he had no option but to adopt one of the permissible methods for valuation of closing stock. The method of calculation under FIFO method made by the Assessing Officer was not found fault by the appellant. Since the appellant had miserably failed to demonstrate before us that it was following continuously weighted average cost method for the purpose of valuation, we have no option but to confirm the action of the Assessing Officer in this regard. - Decided against assessee
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