TMI Blog2012 (8) TMI 772X X X X Extracts X X X X X X X X Extracts X X X X ..... a consequence of deterioration of quality being evident of the Chemical Engineer to support its contention that value of some chemicals in stock had eroded and consequently they had to be revalued - ITAT was correct to delete the addition - in favour of assessee. - INCOME TAX APPEAL NO.4168 OF 2010 - - - Dated:- 8-8-2012 - S.J.VAZIFDAR M.S. SANKLECHA, JJ. Mr.Vimal Gupta,Advocate for the Appellant. Mr.S.N.Inamdar along with Mr. Mihir Naniwadekar for the Respondent. JUDGMENT ( Per M.S. SANKLECHA, J.) : This appeal by the revenue under Section 260A of the Income Tax Act, 1961 (hereinafter referred to as ( the Act ) challenges the order dated 30/10/2009 of the Income Tax Appellate Tribunal ( the Tribunal ) relating t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd on facts in deleting addition of Rs.21,46,479/- without appreciating the factual and legal matrix of the case as brought out in the assessment order? 3) The respondent-assessee is engaged in the manufacture and trading of screen printing inks, digital inks etc. During the course of the assessment proceedings for the assessment year 2003-04 the Assessing officer by an order dated 9/3/2006 noted that the closing stock as on 31/3/2003 was valued at Rs.379.00 crores and from which an amount of Rs.69.98 lacs was deducted as non moving/slow moving stock by making a provision for the same and the net value of the closing stock was disclose in its account at Rs.3.09 crores. The explanation of the respondent company for reducing the value of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me Tax (Appeals) dated 26/4/2007. The Tribunal held on fact that the reasons for providing lower value to non moving stock was deterioration in quality of the ink resulting in erosion of its value. The basis for reaching the aforesaid conclusion was the certificate produced of a Chemical Engineer. The Tribunal held that the Assessing officer had not rejected the method of valuation adopted by the assessee so as to entitle him to rework the valuation of the closing stock. The Tribunal held that it is well settled law to reduce the valuation of non moving stock and the entire exercise is bonafide. 6) We find that appropriate valuation of the closing stock is essentially a question of fact. Both the authorities i.e. Commissioner of Income Ta ..... X X X X Extracts X X X X X X X X Extracts X X X X
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