https://www.taxtmi.com/caselaws?id=288834 A consistently followed and departmentally accepted stock valuation method cannot be displaced merely because the tax authority considers it inconvenient or imperfect, particularly where item-wise identification remains possible and no defect in the method is established. The Tribunal also noted that an addition based on third-party statements recorded behind the assessee's back, without cross-examination, violates natural justice and requires independent corroboration. Applying these principles, the closing stock revaluation addition and the gross profit addition on alleged unaccounted sales were deleted, as the record did not establish suppressed sales and contemporaneous stock records supported the assessee's explanation. en-us Fri, 17 Aug 2018 00:00:00 +0530 Thu, 02 Jul 2020 07:41:45 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=288834 A consistently followed and departmentally accepted stock valuation method cannot be displaced merely because the tax authority considers it inconvenient or imperfect, particularly where item-wise identification remains possible and no defect in the method is established. The Tribunal also noted that an addition based on third-party statements recorded behind the assessee's back, without cross-examination, violates natural justice and requires independent corroboration. Applying these principles, the closing stock revaluation addition and the gross profit addition on alleged unaccounted sales were deleted, as the record did not establish suppressed sales and contemporaneous stock records supported the assessee's explanation. Case-Laws Income Tax Fri, 17 Aug 2018 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=288834