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TMI Blog2011 (9) TMI 801X X X X Extracts X X X X X X X X Extracts X X X X ..... the Hon'ble Supreme Court of India in the case of Investment Ltd. v. CIT [1970] 77 ITR 533 (SC), United Commercial Bank v. CIT [1999] 240 ITR 355/106 Taxman 601 (SC) that it is always open to an assessee to adopt any method of keeping accounts for the purpose to value his stock-in-trade either at cost price or market price. It has been held that the method of accounting regularly employed can be discarded by the department only if, in the opinion of the taxing authorities, income of the trade cannot be properly deduced therefrom. Similarly, it has been held that if the department has accepted the practice so adopted for previous years, then there must be justifiable reason for not accepting the same in a particular year. In the facts of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stock at the end of the year on the basis of price calculated backwards was correct method. Therefore, this Court may not interfere with the order. 4. Having heard counsel for the parties and having gone through the records, I am of the considered opinion that it has not been found by the appellate authority that the method adopted by the assessee in the present year had not been so followed in the previous years nor there is any mistake in the calculation of the valuation of the closing stock, as done by the assessee. Merely because some other method could have been adopted, as has been suggested under the order impugned before the Tribunal, it will not mean that the assessee has committed an error in working out the valuation of the clos ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... perused the impugned order, we feel that it cannot be sustained. It is a non-speaking order. The revisional power of the Commissioner or the Director, as the case may be, under section 264 of the Act may not be as wide as that conferred on an appellate authority but it has all the trappings of a judicial power. It could perhaps be argued that having regard to the language of section 264 of the Act, the order of the Commissioner is an administrative act. We feel that even if that be so, an administrative body, in ascertaining facts and law, is also obliged to act judicially notwithstanding that its proceedings are not in accordance with the practice of a court of law. The revisional power has to be exercised on an objective consideration of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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