TMI Blog2011 (9) TMI 801X X X X Extracts X X X X X X X X Extracts X X X X ..... o adopt any of the method for computation of the value of the stock and interference in such method, adopted by the assessee, can only be made if it is found that the income of the trade cannot be properly deduced therefrom - Decided in favor of the assessee Why the revisional authority did not find it proper to accept the challenge made to the order of the assessing authority - In Dwarka Nath v. ITO [1965 -TMI - 49313 - SUPREME Court], while dealing with the question whether the order of Commissioner under section 33A of the Indian Income-tax Act, 1922, in pari materia with section 264 of the Act, is judicial or quasi-judicial, the Supreme Court observed that prima facie, the jurisdiction conferred under the section is a judicial one - D ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n to the assessee to adopt the method of valuation of the stock, as has been done by the assessee. However, he proceeded to hold that in the facts of the case the valuation of closing stock on the basis of the average price for the entire year (as has been done by the assessee) will not reflect the correct valuation of closing stocks. He thereafter proceeded to hold that if the stock is valued by proceeding backwards from the end of the year to the extent of the closing stock, one should be able to compute the profits correctly, and on that basis the method adopted by the assessee has been faulted with. 3. Counsel for the petitioner submits that there is absolutely no finding by the appellate authority to the effect that the method adop ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ance upon the judgment in the case of CIT v. British Paints India Ltd. [1991] 54 Taxman 499/188 ITR 44 (SC). 6. As already noticed above, the Supreme Court has specifically held that it is open to an assessee to adopt any of the method for computation of the value of the stock and interference in such method, adopted by the assessee, can only be made if it is found that the income of the trade cannot be properly deduced therefrom. In the opinion of the Court the judgment relied upon by the department is clearly distinguishable on the facts of this case. 7. In the facts of the case having regard to the law laid down by the Hon'ble Supreme Court in the case of Investment Limited ( supra ) and in the case of United Commercial Ba ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ase. The power is coupled with a duty to be exercised in the interest of doing real justice between the parties, particularly when under the Act the order passed under section 264 is final. In Dwarka Nath v. ITO [1965] 57 ITR 349 (SC), while dealing with the question whether the order of Commissioner under section 33A of the Indian Income-tax Act, 1922, in pari materia with section 264 of the Act, is judicial or quasi-judicial, the Supreme Court observed that prima facie , the jurisdiction conferred under the section is a judicial one. It was said that the nature of the jurisdiction and the rights decided carry with them necessarily the duty to act judicially in disposing of the revision." 10. In view of the aforesaid, the leas ..... X X X X Extracts X X X X X X X X Extracts X X X X
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