https://www.taxtmi.com/article/detailed?id=1788 Closing stock valuation differences generally create only timing differences because closing stock of one year becomes opening stock of the next; additions made by the Assessing Officer in one year typically reverse as deductions in the subsequent year. Notified accounting standards allow changes in the formula used to ascertain cost-including ERP driven computation-so long as the underlying accounting policy and prudential principles are observed, the change is bona fide, disclosed and prospective. Revenue authorities should avoid litigation where only tax deferral occurs and provide guidance to Assessing Officers to consider multi year impacts. en-us Tue, 26 Jun 2012 12:08:44 +0530 Tue, 26 Jun 2012 18:14:11 +0530 TaxTMI RSS Generator https://www.taxtmi.com/article/detailed?id=1788 Closing stock valuation differences generally create only timing differences because closing stock of one year becomes opening stock of the next; additions made by the Assessing Officer in one year typically reverse as deductions in the subsequent year. Notified accounting standards allow changes in the formula used to ascertain cost-including ERP driven computation-so long as the underlying accounting policy and prudential principles are observed, the change is bona fide, disclosed and prospective. Revenue authorities should avoid litigation where only tax deferral occurs and provide guidance to Assessing Officers to consider multi year impacts. Articles Income Tax Tue, 26 Jun 2012 12:08:44 +0530 https://www.taxtmi.com/article/detailed?id=1788