2003 (4) TMI 70

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... year 1991-92, the Tribunal was right in holding that the method of valuation of closing stock followed by the assessee was justified?" The facts which have given rise to this application are that the assessee was assessed for the year 1991-92. During the assessment year the assessee had consumed 66,14,484 pudas of "tendu" leaves valued at Rs. 62,47,554. The cost price per thousand bundles for the opening stock was Rs. 64,429. The purchase during the assessment year in respect of one thousand bundles amounted to higher than the price which was reflected in the opening stock. The assessee adopted the average method by taking out the mean and showed Rs. 891.33 in respect of Mehdiwala branch and Rs. 951.54 in respect of Sihora branch and si....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....sioner of Income-tax (Appeals) who had accepted the mean adopted by the assessee. Thereafter an application was preferred under section 256(1) of the Act for referring the question to this court. However, the Tribunal expressed the view that no referable question of law did arise and accordingly it declined to refer the same. We have heard Mr. Rohit Arya, learned counsel for the petitioner, and Mr. A.P. Shrivastava, learned counsel for the assessee. Mr. Arya has placed reliance on the decision rendered in the case of British Paints India Ltd. [1991] 188 ITR 44 (SC) and referred to paragraphs 21 and 22 of the said judgment. The submission of Mr. Arya is that the method adopted by the Assessing Officer is absolutely sound for the purpose o....