2008 (12) TMI 34

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....ferred this appeal under Section 260A of the Income Tax Act, 1961 (for short, "the Act") against the order of the Income Tax Appellate Tribunal, Chandigarh Bench 'B', Chandigarh dated 08.05.2008 passed in I.T.A. No.809/Chandi/2007 in the case of Assistant Commissioner of Income Tax Circle, Patiala vs. The Patiala Improvement Trust, Patiala for the Assessment Year 2004-05, proposing to raise follow....

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....ng the method of valuation of stock ?" 2. The assessee is an institution registered under Section 12 AA of the Act. It filed its original return for the assessment year 2004-05 on 01.11.2004. Subsequently revised return was filed on 31.03.2006, which was rejected by the Assessing Officer on the ground that the assessee has changed the method of accounting by adopting market price for valuation of....

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....the revised return & hence the profit cannot artificially increase with the valuation of closing stock at market rate. Therefore, Assessing Officer is directed to re-compute the income by adopting value of closing stock at cost or market price whichever is lower. Hence, to this extent, appellant's ground is allowed." 3. The Tribunal upheld the said view. 4. We have heard leaned counsel for the R....