TaxTMI 
TaxTMI 
1997 (5) TMI 22
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....unal's order dt. 22nd Oct., 1992 in ITA No. 413/Asr/1988 (asst. yr. 1983-84) : "Whether, on the facts and in the circumstances of the case, the Tribunal is right in law in deleting the addition of Rs. 12,31,658 made by the AO and upheld by CIT(A) on account of valuation of closing stock of sugar." 2. M/s Janta Co-operative Sugar Mills Ltd., Bhogour, manufactures three different varieties of sugar, i.e., crystal sugar, raw brown sugar and sugar in process and for each variety of sugar different method was adopted for valuing the same on the last day of the accounting year. For crystal sugar, it put value of production @379.96 per bag; for raw brown sugar it valued the stock @Rs. 150 per bag and for sugar in process it valued the stock ....
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....bunal to state the case and refer the aforesaid question of law to this Court for its opinion. 3. We have heard the learned counsel for the parties. 4. The assessee-firm was asked to explain the basis for valuation of sugar manufactured by it. As per statement submitted before the IAC (Asst.) Range I, Jalandhar, the assessee had declared 45309 bags of free sale sugar and the value was calculated @ Rs. 383 per bag. The IAC (Asst.) Range I, Jalandhar, worked out the cost of production, as regards crystal sugar, at Rs. 383 per bag as against Rs. 379.96 adopted by the assessee and accordingly he made an addition of Rs. 1,37,727 in respect of this variety of sugar. Similarly, as regards other two varieties of sugar, i.e., raw brown suga....
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....bsp; 6,28,992 Sugar in process 4,31,210 Additional 564 bags of sugar in process 1,71,456 Total Addition 12,31,658 When the matter went before the Tribunal, it accepted the appeal and deleted the addition so made. 6. The contention of the learned counsel for the Revenue is that an arbitrary method has been adopted by the Tribunal....