TaxTMI 
TaxTMI 
1992 (3) TMI 103
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....tock of finished goods of industrial machinery and Glass Lined Equipments from "sold at contract rate and unsold at lower of the cost or market value" to 'At cost'. As a result of this change the valuation of closing stock of Industrial Machinery and Glass Lined Equipments was lower by Rs. 7,30,298. It was submitted by the assessee that the assessee had changed method because the changed method was proper method and also proper method. It was submitted that the change has been made on permanent basis and the changed method had been followed in all subsequent years. It was also submitted that the changed method was a recognised method acknowledged by the Accounts and Commercial World. It was also submitted that the change was bona fide. The ....
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....ee for valuing closing stock, was a recognised method of valuation and was a proper method and the said method had been following permanently in subsequent years. He referred to the decision of the Calcutta High Court in the case of British Paints India Ltd. v. CIT [1978] 111 ITR 53. According to him the closing stock of the year under consideration would be opening stock of the subsequent year and the loss, if any, would get set off in subsequent years and there would be no loss to the revenue in view of the fact that rate of tax in the case of companies are uniform over the years. He accordingly deleted the addition made by the ITO. The department is in appeal before the Tribunal. 10. After hearing the parties, we find that there is no d....