TMI Blog2019 (5) TMI 1210X X X X Extracts X X X X X X X X Extracts X X X X ..... he AO applied the net profit ratio of the earlier AY and confirmed by CIT - ITAT deleted addition - HELD THAT:- ITAT having perused the auditor s report noticed that a company s inventory was valued at lower cost or net reliable value and included cost of bringing the goods in the present location and other conditions. The Auditor had stated that the valuation adopted that is based on the retail m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... atia, Advocate. Respondent Through: None O R D E R CM APPL. 22333/2019 (for exemption) in ITA 480/2019 1. Allowed, subject to all just exceptions. ITA 476/2019 CM APPL. 22332/2019 (for delay) ITA 480/2019 7 CM APPL. 22334/2019 (for delay) 2. The present appeal is directed against an order dated 29th December 2017 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he AO perused the report of the Statutory Auditor with the comment that the accuracy of valuation of inventories of finished goods could not be commented upon. Their net profit ratio was found to be 10.72% as compared to 15.19% in the earlier AY. Likewise, the explanation offered for AY 2011-12 was also not believed and a similar addition was deleted. 5. The AO rejected the explanation of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ximated. With the nature of business activity carried on by the Assessee, it was not possible to keep the production cost of each and every finished product, it could be, therefore, on an approximate basis, it could be spread over the goods produced. 8. The ITAT has also referred to the accounting standards and come to the conclusion that there was a valid explanation for the drop in the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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