https://www.taxtmi.com/caselaws?id=12729 The dominant issue was whether a bona fide change in the method of valuing closing stock, resulting in reduced taxable income, justified an addition on the footing of deliberate tax avoidance under McDowell. The Tribunal's factual finding that the change lacked mala fides was accepted; a change in valuation method inherently affects taxable income, and reduction alone does not establish deliberate undervaluation. Since the revised method was consistently followed thereafter, aligned with industry practice, and was not objected to by the Revenue in subsequent years, no addition could be made merely for the resultant reduction. The HC declined to entertain the application and dismissed the appeals. en-us Fri, 02 Feb 2001 00:00:00 +0530 Wed, 07 Jan 2026 17:33:35 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=12729 The dominant issue was whether a bona fide change in the method of valuing closing stock, resulting in reduced taxable income, justified an addition on the footing of deliberate tax avoidance under McDowell. The Tribunal's factual finding that the change lacked mala fides was accepted; a change in valuation method inherently affects taxable income, and reduction alone does not establish deliberate undervaluation. Since the revised method was consistently followed thereafter, aligned with industry practice, and was not objected to by the Revenue in subsequent years, no addition could be made merely for the resultant reduction. The HC declined to entertain the application and dismissed the appeals. Case-Laws Income Tax Fri, 02 Feb 2001 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=12729