TMI Blog2010 (1) TMI 1262X X X X Extracts X X X X X X X X Extracts X X X X ..... adjudicated upon. 3. Grounds No.2 to 5 in all these appeals are identical in all the three appeals and the same read as follows- 2. The learned Commissioner of Income-tax(Appeals) erred in comparing the profits ratio of the subject asst. year with earlier years, whose facts and circumstances were entirely different. The learned Commissioner of Income tax(Appeals)also failed to appreciate the changed scenario of the case before estimating the GP rate. 3. The learned Commissioner of Income-tax(Appeals) erred in estimating the GP rate at 20% for the subject asst. year and also erred in not recognizing the facts that the GP rate is fallen because of the significant increase in turnover and due to the change in the customer base ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... closing stock is a recognized and valid method of valuation- (a) CIT V/s. JP Patel (Bomay) Pvt. Ltd.(263 ITR 421)-MP (b) DCIT Vs./ Harjivandas J.Zaveri(1998)60 TTJ (Ahd)155 (c) ITO Vs/ Sree Padmanabha Jewellery Mart (19 ITD 816) 5. The Learned Departmental Representative submitted that the assessee has failed to submit necessary details regarding the valuation of closing stock before the Assessing Officer or the CIT(A). The assessee has not maintained stock register with regard to its jewellery business and the monthwise details of stock purchased, details of gold conversion and sales and what part of sales were effected out of the opening stock, were not submitted by the assessee before the Assessing Officer. He submitted that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ethod adopted consistently by the assessee was accepted by the Department through out in the past years. In DCIT V/s. Harjivandas H, Zaveri (supra), wherein the assessee-firm has been found to be consistently valuing the closing stock 'at cost' and following the system of 'Last-in-First Out', it was held that where the assessee had been following a regular system of accounting since last so many years and this method was based on accepted principles of accounting, i.e. at cost, there was no justification for rejecting the method of valuation of stock. No other defect in the maintenance of accounts by the assessee could be pointed out by the Revenue. In these facts of the case, we find no justification for rejecting the books ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e and has relied on the orders of the Assessing Officer and the CIT(A). He submitted that the CIT(A) was more than reasonable in allowing substantial relief to the assessee on this issue. 10. We have considered the rival submissions. We find that the statements of the goldsmiths recorded by the Assessing Officer revealed some overstatement of the making charges claimed by the assessee. We find that the assessee has not requested for the crossexamination of the goldsmiths, whose statements were recorded by the Assessing Officer. The CIT(A) has passed a well reasoned and speaking order on this issue and has fairly restricted the addition working out the same at ₹ 20 per gram of gold ornaments, to ₹ 4.64 lakhs as against ₹ ..... X X X X Extracts X X X X X X X X Extracts X X X X
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