TaxTMI 
TaxTMI 
2012 (8) TMI 462
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.... following questions of law for the consideration of this court. a) Whether on the facts and circumstances of the case and in law the Tribunal was right in holding that even though the method of valuation of closing stock consistently followed by the assessee was to take cost or market price whichever was lower, the valuation done at cost only was correct and proper method of valuation without appreciating the ratio laid down by the Apex Court in the case of CIT Vs. British Paints India ltd. reported in 188 ITR 44 (S.C.) b) Whether on the facts and circumstances of the case and in law, the ITAT was right in holding that when the entire income of the assessee was subjected to deduction of tax at source and no interest can be imposed u/s. 2....
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....made during the year, its value, sales made during the year and the closing stock. The respondent- assessee had also given valuation of the stents as available on 1/4/2002 i.e. opening stock. The quantity of closing stock was arrived at by adding the purchases to the opening stock and reducing the sales made during the course of the year. However, as the respondent had a record of the value (cost wise) of each stent in its possession the value of the closing stent was arrived at on cost basis as the same was lower than its market value. However, the above statement of closing stock supplied by the respondent-assessee was not accepted by the Assessing Officer, who by an assessment order dated 20/3/2006 worked out the closing stock on the bas....
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....ation of closing stock was upheld and the addition as done by the Assessing Officer was deleted. 6) On appeal, the Tribunal by its order dated 5/4/2010 dismissed the revenue's appeal .The Tribunal held that it is an admitted position that the respondent has been consistently following costs or market price whichever is lower method of valuing the closing stock. The Tribunal found that the respondent had the cost of stents of different qualities and had arrived at the value of the closing stock of stents by multiplying the quantity of each type of stent in its possession with the respective value of that quality of stent purchased during the last quarter of the previous year ending 31.3.2003. Thereafter all the individual values were aggreg....
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....al have upheld the valuation of the closing stock declared by the respondent-assessee, their concurrent findings ought not to be interfered with in this appeal. Mr. Irani further submits that the cost or market value method of valuation of the closing stock has been consistently followed by them and accepted by the department. There is no reason to change the method. He lastly submits that the costs of each stent varies depending upon its quality in the range of Rs.342/- to 16,776/-. The method of averaging the costs adopted by the revenue would lead to distortion of respondent-assessee's profits. It was his submission that the valuation of the closing stock arrived at by the respondent-assessee is accurate as the same was arrived at by mul....
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....to arrive at the valuation of closing stock on the basis of quality of the stent and its costs as available on actual basis. The method of valuation of closing stock in the present case done by the revenue of first determining average costs of each stent and then multiplying the average costs to each stent to the total number of stent in possession of the respondent at the end of the year. However, the above method does not lead towards proper disclosure of the value of the closing stock. This is for the reason that there are various types of stents and each of them has a different price. The respondent assessee has identified the purchase price of each such type of stent as was available with them for the quarter ending March, 2003. Conseq....