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2017 (7) TMI 30 - ITAT MUMBAIReopening of assessment - loss on valuation of stock - Held that:- The assessee was constrained to change the method of valuation of stock after the revised Accounting Standard-2 became mandatory. The semi finished goods were hither to valued at cost and the said fact was reported in the Annual report relating to AY 2002-03. The change in the valuation was also duly disclosed in the Annual report relating to AY 2003-04. The details of change were also communicated to the AO through a letter dated 02-01- 2006 filed in the original assessment proceedings before the AO. Copy of the letter filed before the AO is placed on record at page 46-47 of the paper book. The AO has completed the original assessment accepting the explanations of the assessee without making any addition. Assessee has disclosed all the facts material to computation of income fully and truly. AO did not state in the reasons for reopening that there was failure on the part of the assessee. Hence the AO has reopened the assessment on mere change of opinion and hence the reopening has to be held as bad in law. - Decided in favour of assessee.
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