2015 (10) TMI 946

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.... For the Respondent : Mr. Ajay Vohra, Senior Advocate with Ms. Kavita Jha and Mr. Vaibhav Kulkarni, Advs ORDER 1. This appeal by the Revenue under Section 260A of the Income Tax Act, 1961 ('Act') is directed against the order passed by the Income Tax Appellate Tribunal ('ITAT') dated 10th January 2002 in ITA No. 3697/Del/94 for the Assessment Year ('AY') 1990-91. ....

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....atorily required to supply to the government 'levy' sugar which would be sold at less than the market price. Separate books were being maintained for the 'levy' sugar and the 'free sale' sugar. The Assessee had consistently followed a system by which the closing stock of the sugar manufactured was valued at cost or market rate whichever was lower both in respect of the levy....

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....." The ITAT also noted that the Department had accepted this accounting practice of the Assessee in the past. The ITAT has referred to the principle of consistency explained by the Supreme Court in Radhasoami Satsang v. CIT 193 ITR 321. The Court is informed that this has been reiterated by the Supreme Court recently in Excel Industries v. CIT 358 ITR 295. The ITAT pointed out that the AO has not ....