https://www.taxtmi.com/caselaws?id=465490 The dominant issue was whether the AO could revalue only the closing stock at weighted average rate despite the assessee's consistent FIFO-at-cost method. The ITAT held that a consistently followed, reasonable stock valuation method cannot be disturbed selectively; if the method is changed, both opening and closing stock must be valued uniformly to prevent distortion, and weighted average was inappropriate given varied product-wise prices and expiry considerations. Consequently, the addition for alleged undervaluation of closing stock was deleted. A separate issue concerned deductibility of rent for new business premises; since the premises were not used for business in the relevant year and licence-shifting formalities were not completed then, the rent was rightly disallowed. Interest u/s 234C was held chargeable only on returned income, while u/s 234B was consequential. en-us Wed, 28 Jun 2023 00:00:00 +0530 Sat, 27 Dec 2025 18:00:22 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=465490 The dominant issue was whether the AO could revalue only the closing stock at weighted average rate despite the assessee's consistent FIFO-at-cost method. The ITAT held that a consistently followed, reasonable stock valuation method cannot be disturbed selectively; if the method is changed, both opening and closing stock must be valued uniformly to prevent distortion, and weighted average was inappropriate given varied product-wise prices and expiry considerations. Consequently, the addition for alleged undervaluation of closing stock was deleted. A separate issue concerned deductibility of rent for new business premises; since the premises were not used for business in the relevant year and licence-shifting formalities were not completed then, the rent was rightly disallowed. Interest u/s 234C was held chargeable only on returned income, while u/s 234B was consequential. Case-Laws Income Tax Wed, 28 Jun 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=465490