TMI Blog2005 (8) TMI 91X X X X Extracts X X X X X X X X Extracts X X X X ..... ears to be no proper reason for the assessee to change the method of valuing the closing stock. Admittedly, in all the previous years, stock was valued at the market rate. It appears that with intent to reduce the profit, the assessee had changed the method of valuation and adopted the average cost rate, which resulted in the reduction of income. All the authorities below found that the change in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee a registered firm, was a dealer in gold and silver ornaments and bullion. It has been valuing its closing stock at the market rate. During the year under consideration, the matter of valuation of the closing stock was changed. During this year, it was claimed by the assessee that the valuation of the closing stock has been shown by taking the average cost. On being questioned by the Income-tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee has changed the method for valuing the closing stock bona fide, which it had valued regularly in the subsequent years. He submitted that the average cost basis of valuing the closing stock is a recognised method and, therefore, the method adopted by the applicant should have been accepted and the assessing authority had erred in rejecting the valuation of closing stock disclosed by the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was valued at the market rate. It appears that with intent to reduce the profit, the assessee had changed the method of valuation and adopted the average cost rate, which resulted in the reduction of income. All the authorities below found that the change in the method of valuation was not bona fide, but was only to reduce the income. Learned counsel for the assessee is not able to show any bona ..... X X X X Extracts X X X X X X X X Extracts X X X X
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