https://www.taxtmi.com/caselaws?id=775425 The ITAT Kolkata held that inventory valuation must comply with ICDS-II and section 145A, disallowing the LIFO method previously used by the assessee. Both opening and closing stock should be valued consistently under ICDS-II to accurately reflect profits. The AO was directed to recompute profits for the impugned year using ICDS-II and to assess the impact on prior years separately under section 148, as the surplus arises from accumulated adjustments since ICDS-II's introduction. The assessee was allowed to submit detailed calculations for past assessment years, which the AO must apply uniformly. The appeal was partly allowed with the orders of the CIT(A) and AO set aside. en-us Tue, 22 Jul 2025 00:00:00 +0530 Fri, 25 Jul 2025 08:28:06 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=775425 The ITAT Kolkata held that inventory valuation must comply with ICDS-II and section 145A, disallowing the LIFO method previously used by the assessee. Both opening and closing stock should be valued consistently under ICDS-II to accurately reflect profits. The AO was directed to recompute profits for the impugned year using ICDS-II and to assess the impact on prior years separately under section 148, as the surplus arises from accumulated adjustments since ICDS-II's introduction. The assessee was allowed to submit detailed calculations for past assessment years, which the AO must apply uniformly. The appeal was partly allowed with the orders of the CIT(A) and AO set aside. Case-Laws Income Tax Tue, 22 Jul 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=775425