1990 (2) TMI 11

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....n 256(1) of the Income-tax Act, 1961, to this court : " Whether, on the facts and in the circumstances of the case, the Tribunal was justified in deleting the addition of Rs. 11,49,000 made by the Income-tax Officer on account of undervaluation of closing stock of tea ?" In this case, the assessment year involved is 1978-79 for which the relevant year of account is the calendar year 1977. The f....

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.... Rs. 11,49,000 approximately. Consequent to this change in the basis, credit has been taken in profit and loss account in respect of selling expenses allocable to the stock (which expenses used to be charged up to 1976 on seasonal basis) to be debited to expenses in the following year's accounts.' According to the Income-tax Officer, the change in the method of accounting effected during the cale....

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....he facts found by the Tribunal in the case of Rajgarh Tea Co. Ltd. for the assessment year 1978-79 and, following the Tribunal's order in the said case, (ITA No. 621/ Cal/83) upheld the Commissioner of Income-tax (Appeal)'s order deleting the addition of Rs. 11,49,000 on account of undervaluation of closing stock of tea. There is no merit in this reference. According to the Income-tax Officer, th....