TMI Blog2007 (12) TMI 217X X X X Extracts X X X X X X X X Extracts X X X X ..... ears and may reduce the taxable income for those years - Held that - The Commissioner of Income-tax (Appeals) observed that the manner of valuation was in accordance with the method consistently followed by the assessee. It was also found that a decrease in stock of Rs. 1.09 crores was partly due to the sale of finished goods at lower than cost and partly due to diminution in the value of the clos ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed counsel for the Revenue, deletion of additions made by the Assessing Officer (AO) will be carried forward to the subsequent years and may reduce the taxable income for those years. Therefore, according to her, the appeal may be entertained. Notwithstanding the fact that the tax effect is nil, we have heard the matter on the merits. 2. Learned counsel for the Revenue has urged two issues. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er of Income-tax (Appeals) was of the view that even if the assessee was associated with Polar Group of Industries, it was possible for such a discrepancy to arise in the normal course of dealings between the parties. The Commissioner of Income-tax (Appeals) was satisfied with the explanation of the assessee and held that it has been able to reconcile the difference in the balance as pointed out b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the view that the valuation of stock had been carried out by the assessee in a reasonable manner. The market value had been taken to be the average of the sale value of the goods during the year. The Commissioner of Income-tax (Appeals) observed that this manner of valuation was in accordance with the method consistently followed by the assessee. It was also found that a decrease in stock of R ..... X X X X Extracts X X X X X X X X Extracts X X X X
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