https://www.taxtmi.com/caselaws?id=463853 ITAT, Mumbai dismissed the revenue's appeal, holding the assessing officer's rejection of the assessee's average-cost method for closing stock valuation and related additions was incorrect. The tribunal found books properly maintained with no defects identified, noted the practical impossibility of applying FIFO/LIFO given billing details, and observed the average-cost method had been accepted in prior and subsequent years. As profit must be computed by the method of accounting regularly followed, and no evidence showed aberrant profit rates, the AO's adjustment was disallowed. en-us Fri, 19 Jul 2013 00:00:00 +0530 Fri, 19 Sep 2025 11:35:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=463853 ITAT, Mumbai dismissed the revenue's appeal, holding the assessing officer's rejection of the assessee's average-cost method for closing stock valuation and related additions was incorrect. The tribunal found books properly maintained with no defects identified, noted the practical impossibility of applying FIFO/LIFO given billing details, and observed the average-cost method had been accepted in prior and subsequent years. As profit must be computed by the method of accounting regularly followed, and no evidence showed aberrant profit rates, the AO's adjustment was disallowed. Case-Laws Income Tax Fri, 19 Jul 2013 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=463853