https://www.taxtmi.com/caselaws?id=310876 A change in closing stock valuation is permissible only if it is bona fide and intended to be followed regularly under the method of accounting recognised by section 145 of the Income-tax Act, 1961. Where the assessee altered the valuation method more than once within a short period, including through revised returns filed after closure of accounts, and offered no cogent business reason, the repeated shifts indicated an attempt to reduce taxable income rather than a genuine accounting change. On those facts, the change was not accepted as regularly followed, and the assessing officer was justified in rejecting the revised method and making the addition. en-us Wed, 29 Dec 2004 00:00:00 +0530 Thu, 23 Nov 2023 11:10:48 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=310876 A change in closing stock valuation is permissible only if it is bona fide and intended to be followed regularly under the method of accounting recognised by section 145 of the Income-tax Act, 1961. Where the assessee altered the valuation method more than once within a short period, including through revised returns filed after closure of accounts, and offered no cogent business reason, the repeated shifts indicated an attempt to reduce taxable income rather than a genuine accounting change. On those facts, the change was not accepted as regularly followed, and the assessing officer was justified in rejecting the revised method and making the addition. Case-Laws Income Tax Wed, 29 Dec 2004 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=310876