https://www.taxtmi.com/caselaws?id=177265 The Court upheld the deletion of additions to the closing stock of polished diamonds and rough diamonds due to undervaluation. The Assessing Officer's method of valuation was deemed unrealistic, while the appellant's approach, based on realizable value reduced by profit rate, was supported by auditors and Accounting Standard-2. The Court agreed with the CIT(A) that the AO's averaging method for rough diamonds was incorrect, as the appellant's valuation based on the last purchase was more appropriate. The Court found the appellant's valuation method for inventory, considering the nature of the diamond business, acceptable and dismissed the Revenue's appeal. en-us Fri, 12 Feb 2010 00:00:00 +0530 Wed, 06 Jan 2016 10:35:07 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=177265 The Court upheld the deletion of additions to the closing stock of polished diamonds and rough diamonds due to undervaluation. The Assessing Officer's method of valuation was deemed unrealistic, while the appellant's approach, based on realizable value reduced by profit rate, was supported by auditors and Accounting Standard-2. The Court agreed with the CIT(A) that the AO's averaging method for rough diamonds was incorrect, as the appellant's valuation based on the last purchase was more appropriate. The Court found the appellant's valuation method for inventory, considering the nature of the diamond business, acceptable and dismissed the Revenue's appeal. Case-Laws Income Tax Fri, 12 Feb 2010 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=177265