TMI Blog2013 (12) TMI 1253X X X X Extracts X X X X X X X X Extracts X X X X ..... O did not estimate such value - In the absence of any other material produced by the assessee he accepted the lowest of purchase price as the value of the closing stock - Decided against assessee. - Income Tax Appeal No. - 47 of 2009 - - - Dated:- 24-7-2012 - Hon'ble Sunil Ambwani And Hon'ble Aditya Nath Mittal,JJ. For the Petitioner : Rakesh Ranjan Agarwal For the Respondent : C.S.C. I.T. Deptt. ORDER We have heard Shri R.R. Agarwal, learned counsel appearing for the appellant-assessee. Shri R.K. Upadhyay appears for the department. This appeal under Section 260-A of the Income Tax Act, 1961 has been preferred against the order of the Income Tax Appellate Tribunal dated 28.11.2008, by which it has dismissed the appeal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has said something of the nature, which the appellant is proposing as third question above, in paragraph-7 of the judgment. However, after reading the whole judgment of Madras High Court, we are unable to find out any cogent reason for the opinion that the valuation accepted under the Tamil Nadu General Sales Tax Act, is binding on the income-tax authorities. The U.P. Trade Tax Act and Income Tax Act, are two different Acts. The authorities are different under the two Acts functioning under different Govt. Thus, we see no reason how it can be held that an order or decision regarding stock valuation under the Trade Tax Act will virtually operate as res judicata in proceedings under the Income Tax Act. Moreover, while computing the questio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... P. State Forest Corporation Ltd (supra) the Himanchal Pradesh High Court recorded findings that the assessee had disclosed the material facts for reduction of the closing stocks on account of deterioration of the old stocks. In other cases, it was found that when an estimate is made of the income on the best judgment assessment, there cannot be any concealment and thus no penalty can be imposed. In the present case, the assessment was not based on estimation. The AO found that the assessee had concealed the income by reducing the value of the closing stocks at absurdly lower rate, which was much less than the purchase price. There was no evidence or material to show that the stock of foodgrains had deteriorated to such an extent, that t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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