2005 (8) TMI 91
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....tion of law under section 256(2) of the Income-tax Act, 1961 (hereinafter referred to as "the Act"), for the assessment year 1980-81 for the opinion of this court: "Whether the Tribunal was legally correct to uphold the addition made to the closing stock valuation and to reject the method of valuation adopted by the assessee to average cost instead of the market value?" The brief facts of the ca....
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....ected the said system and valuing the closing stock at market rate, made an addition of Rs. 80,191 to the income of the assessee. The said order was confirmed by the learned Commissioner of Income-tax (Appeals) and was also upheld by the Tribunal in second appeal. Heard Sri R.S. Agrawal, learned counsel for the applicant, and Sri Shambhu Chopra, learned standing counsel. Learned counsel for the ....
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....ock. He submitted that in the previous years, stock has always been valued at the market rate and, therefore, the same method has rightly been adopted by the assessing authority for the year under consideration. Having heard counsel for the parties, we are of the opinion that there appears to be no proper reason for the assessee to change the method of valuing the closing stock. Admittedly, in al....