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of <h1>Appellate Tribunal Upholds Valuation in Income Tax Case</h1> <h3>Shruti Fastners Ltd. Versus Asstt. Commissioner of Income Tax, Circle-8 (1), New Delhi And Dy. Commissioner of Income Tax, Circle-8 (1), New Delhi Versus Shruti Fastners Ltd.</h3> The Appellate Tribunal upheld the revised valuation of inventory items at Rs. 37.96 per meter, determined by the Ld. Commissioner of Income Tax (Appeals) ... - Issues involved: Valuation of inventory items during a survey operation u/s 133A of the IT Act for assessment year 2007-08.Summary:The cross appeals by the assessee and the Revenue arose from the order of the Ld. Commissioner of Income Tax (Appeals) regarding the valuation of inventory items during a survey operation u/s 133A of the IT Act. The survey team conducted the operation in the presence of the main Director of the assessee company, valuing the inventory at Rs. 7,02,39,612. The assessee disputed the valuation of certain items, contending discrepancies in the recording and pricing by the department. The Assessing Officer disagreed with the assessee's contentions and made additions to the valuation. Upon the assessee's appeal, the Ld. Commissioner of Income Tax (Appeals) extensively analyzed the issue and determined a revised valuation based on the arguments presented.The Ld. Commissioner of Income Tax (Appeals) considered the contentions of both parties and concluded that an estimate was necessary due to discrepancies in the inventory and the failure of the assessee to reconcile the differences promptly. After evaluating the rates proposed by the Assessing Officer and the assessee, the Ld. Commissioner of Income Tax (Appeals) settled on a revised rate of Rs. 37.96 per meter for the inventory items. This decision aimed to strike a balance between the conflicting valuations provided by the parties. The Appellate Tribunal upheld the order of the Ld. Commissioner of Income Tax (Appeals), dismissing the appeals filed by both the assessee and the Revenue.In conclusion, the Appellate Tribunal affirmed the revised valuation determined by the Ld. Commissioner of Income Tax (Appeals) based on the evidence and arguments presented, emphasizing the need for a reasonable estimate in the absence of conclusive proof. The appeals by both parties were consequently dismissed, and the order was pronounced on 31/03/2011.
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