https://www.taxtmi.com/caselaws?id=760046 ITAT Cochin held that AO's addition of VAT only to closing stock while maintaining cost basis for opening stock and purchases violated Section 145A consistency requirements. The assessee correctly followed AS-2 by excluding recoverable VAT from inventory valuation, maintaining the same method for over a decade. The tribunal ruled that if VAT is added to closing stock, it must also be added to opening stock, making the net effect neutral. The addition of Rs. 1,02,910 for incorrect ICDS-2 application was deleted, and the appeal was allowed, emphasizing uniform valuation methods must be applied consistently. en-us Mon, 30 Sep 2024 00:00:00 +0530 Mon, 14 Oct 2024 16:22:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=760046 ITAT Cochin held that AO's addition of VAT only to closing stock while maintaining cost basis for opening stock and purchases violated Section 145A consistency requirements. The assessee correctly followed AS-2 by excluding recoverable VAT from inventory valuation, maintaining the same method for over a decade. The tribunal ruled that if VAT is added to closing stock, it must also be added to opening stock, making the net effect neutral. The addition of Rs. 1,02,910 for incorrect ICDS-2 application was deleted, and the appeal was allowed, emphasizing uniform valuation methods must be applied consistently. Case-Laws Income Tax Mon, 30 Sep 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=760046