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2016 (12) TMI 400 - ITAT CHENNAISales computation - assessment year - method of valuation - Held that:- There is ostensibly no sale agreement/s in-as-much as there is no reference thereto. The goods under reference are under transit as on 31.03.2011, the last date of the relevant previous year, and the physical delivery of the goods effected only in the following year. How, then, we wonder, could be goods be regarded as sold in/during the current year? Surely, it could not merely be on the basis of raising sale invoices or of passing entries recording sales in the books of account, which may be done as a matter of course or as a matter of expediency. We agree that the accounting policy, using the word ‘coincide’, is not very appropriately worded, but then the same is not to be read strictly, as one would read a provision of law, giving due emphasis to every word, but as conveying broadly the intent, as of transfer of ownership of goods in the present case. Then, again, could an accounting policy override substance when no sale, either in law or as per the accounting norms, can be said to have taken place? Surely, not. Revenue has not raised any issue qua the valuation of the goods under reference, which is stated by the ld. A.R. as being in conformity with the method of valuation regularly followed, so the same cannot be regarded as open for review. The matter, in view of the foregoing, shall travel to the file of A.O. for determination on the terms afore-said, i.e., with reference to the insurable interest in the goods under transit as at the year-end. We may also clarify that in the event of the assessee’s claim being not allowable on the said terms; it having offered the income under reference to tax for the following year (Gd. 3), it is at liberty to press its’ claim for the said year u/s. 154 in-as-much as the issue at heart, therefore, is the correct year of assessability of the income under reference; each year being a separate and independent unit of assessment (refer: CIT v. British Paints India Ltd., [ 1990 (12) TMI 2 - SUPREME Court ]
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