https://www.taxtmi.com/caselaws?id=761185 Kerala HC upheld the constitutionality of Income Computation and Disclosure Standards (ICDS) II and Section 145A requiring FIFO or Weighted Average Cost methods for inventory valuation, excluding LIFO method. The court rejected challenges under Article 14, finding no manifest arbitrariness as the provisions ensure uniform inventory valuation for assessees under profits and gains of business. The classification was reasonable, applying equally to all similar taxpayers. The court noted assessees retain freedom to maintain books using any recognized accounting method, but must follow prescribed methods for income computation. The retrospective operation from 01.04.2017 was declared invalid, which the revenue did not challenge. Writ appeal dismissed. en-us Thu, 22 Aug 2024 00:00:00 +0530 Tue, 05 Nov 2024 18:53:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=761185 Kerala HC upheld the constitutionality of Income Computation and Disclosure Standards (ICDS) II and Section 145A requiring FIFO or Weighted Average Cost methods for inventory valuation, excluding LIFO method. The court rejected challenges under Article 14, finding no manifest arbitrariness as the provisions ensure uniform inventory valuation for assessees under profits and gains of business. The classification was reasonable, applying equally to all similar taxpayers. The court noted assessees retain freedom to maintain books using any recognized accounting method, but must follow prescribed methods for income computation. The retrospective operation from 01.04.2017 was declared invalid, which the revenue did not challenge. Writ appeal dismissed. Case-Laws Income Tax Thu, 22 Aug 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=761185