2017 (12) TMI 1704

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.... bad, both in the eye of law and on facts. 2. On the facts and circumstances of the case, the order passed by the learned CIT(A) is bad in law having been passed the same without giving assessee a proper and adequate opportunity of being heard in clear violation of principle of natural justice. 3. On the facts and circumstances of the case, the learned CIT(A) has erred both on facts and in law in confirming the action of AO in rejecting the books of accounts of the assessee, despite the same being maintained properly as per law. 4(i) On the facts and circumstances of the case, the learned CIT(A) has erred both on facts and in law in confirming the action of AO in making addition of Rs. 1,69,57,108/- on account of valuation of stock su....

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....ued closing stock by following weighted average method. Ld. AO considered the same to be arbitrary and rejected the valuation made by assessee and instead applied FIFO method. He also rejected the books of accounts, to the extent of the method followed by assessee for valuation of closing stock. 2.1. Ld. AO also made disallowance to an extent of Rs. 71,223/-by applying Rule 8D read with section 14 A of the Act. 2.2. Aggrieved by the assessment order passed, assessee preferred appeal before Ld.CIT(A) who confirmed the additions made by Ld. AO. 2.3. Aggrieved by the order of Ld.CIT(A) assessee is in appeal before us now. 3. At the outset Ld.AR submitted that Ground No. 1 and 6 are general in nature, Ground No. 2 is not pressed, Ground....

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....asted closing stock as per FIFO method at Rs. 53,03,30,642/-. 4.2. Ld.AR submitted by placing reliance upon the accounting standard 2, issued by Institute of Chartered Accountants on valuation of inventory. She submitted that both weighted average method and FIFO method has been considered as fair/good method of valuation. She placed reliance upon the relevant extract of Accounting Standard 2, which has also been approved by the ICAI, which is reproduced hereunder: "16. Cost of inventory is, other than the elementary dealt with in paragraph 13 shall be assigned by using the First - in First - out, all weighted average cost formula. The formula used shall reflect the fairest possible approximation to the cost incurred in bringing the it....