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2018 (6) TMI 1448 - AT - Income TaxAssessment u/s 153A - selection of assessment year - Held that:- As decided in RAJIV KUMAR VERSUS ASSISTANT COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-1 CHANDIGARH, [2016 (12) TMI 1722 - ITAT CHANDIGARH] It is well settled that an assessment is to be framed for the previous year which precedes the assessment year. For the previous year 2006-07, the assessment year 2007-08, this assessment year succeeds the period of search and not precedes. From the plain language of the provisions contained in cl. (b) of sub-s(1) of section 153A of the Act, it is clear that the assessment under section 153A of the Act could have been framed for the 6 Assessment Years which precedes the assessment year 2007-08. Therefore, we are of the confirmed view that the assessment under section 153A of the Act could have been framed from the Assessment Years 2001-02 to 2006- 07 only and not for the Assessment Year 2007-08 Valuation of Inventories - addition on account of stock difference between books and found during the course of search - Held that:- A method of accounting adopted by the taxpayer consistently and regularly cannot be discarded by the departmental authorities on the view that he should have adopted a different method of keeping accounts or of valuation. Assessee firm is has adopted the valuation of inventory on average cost method / weighted cost which is a scientific method approved by ICAI in AS-2-Accounting Standard-2 –Valuation of Inventories. The assessee has also filed the copy of inventory of stock taken by search team containing pages 18 to 26 assessee's paper book. Looking into the facts and circumstances of the case and also the decision in the case of UCO Bank vs CIT[1999 (9) TMI 4 - SUPREME COURT] it is noted that there is merit in the submission of the assessee and we concur with the same - decided in favour of assessee.
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