TaxTMI 
TaxTMI 
2010 (1) TMI 1262
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....in nature and accordingly same is not adjudicated upon. 3. Grounds No.2 to 5 in all these appeals are identical in all the three appeals and the same read as follows- "2. The learned Commissioner of Income-tax(Appeals) erred in comparing the profits ratio of the subject asst. year with earlier years, whose facts and circumstances were entirely different. The learned Commissioner of Income tax(Appeals)also failed to appreciate the changed scenario of the case before estimating the GP rate. 3. The learned Commissioner of Income-tax(Appeals) erred in estimating the GP rate at 20% for the subject asst. year and also erred in not recognizing the facts that the GP rate is fallen because of the significant increase in turnover....
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.... of his contention that LIFO method of valuing closing stock is a recognized and valid method of valuation- (a) CIT V/s. JP Patel (Bomay) Pvt. Ltd.(263 ITR 421)-MP (b) DCIT Vs./ Harjivandas J.Zaveri(1998)60 TTJ (Ahd)155 (c) ITO Vs/ Sree Padmanabha Jewellery Mart (19 ITD 816) 5. The Learned Departmental Representative submitted that the assessee has failed to submit necessary details regarding the valuation of closing stock before the Assessing Officer or the CIT(A). The assessee has not maintained stock register with regard to its jewellery business and the monthwise details of stock purchased, details of gold conversion and sales and what part of sales were effected out of the opening stock, were not submitted....
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.... is not possible to maintain item-wise stock register. The LIFO method adopted consistently by the assessee was accepted by the Department through out in the past years. In DCIT V/s. Harjivandas H, Zaveri (supra), wherein the assessee-firm has been found to be consistently valuing the closing stock 'at cost' and following the system of 'Last-in-First Out', it was held that where the assessee had been following a regular system of accounting since last so many years and this method was based on accepted principles of accounting, i.e. at cost, there was no justification for rejecting the method of valuation of stock. No other defect in the maintenance of accounts by the assessee could be pointed out by the Revenue. In these fa....
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....tative has opposed the above submission of the assessee and has relied on the orders of the Assessing Officer and the CIT(A). He submitted that the CIT(A) was more than reasonable in allowing substantial relief to the assessee on this issue. 10. We have considered the rival submissions. We find that the statements of the goldsmiths recorded by the Assessing Officer revealed some overstatement of the making charges claimed by the assessee. We find that the assessee has not requested for the crossexamination of the goldsmiths, whose statements were recorded by the Assessing Officer. The CIT(A) has passed a well reasoned and speaking order on this issue and has fairly restricted the addition working out the same at Rs. 20 per gram of gold o....