1984 (10) TMI 80

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....namely, Tamil Nadu and Kerala; and Andhra Pradesh. The assessee found that no person was willing to buy the distribution rights in respect of the territory of Andhra Pradesh and so he valued the closing stock of that distribution right at nil. Regarding the territory of Tamil Nadu and Kerala, the assessee had entered into an agreement with a party on 11th March, 1975 to sell the distribution right of that territory at Rs. 1,70,000. However, that party never took delivery of the picture because it turned out to be a flop in other territories. The assessee entered into negotiations with that party who finally agreed to pay a sum of Rs. 1,35,000 as per the agreement dt. 3rd Aug., 1977. It may be stated that the accounting year of the assessee ....

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....in r. 9A could not be made applicable. Hence, the valuation adopted by the assessee should have been accepted in the facts and circumstances of the case. The CIT(A) agreed with this contention and directed the ITO to adopt the figure of Rs. 1,35,000 in place of Rs. 3,38,384 taken in the assessment order. 5. Shri Roy Slphonso, the ld. Representative for the Department urged before us that the ld. CIT(A) erred in his decision. He stated that percentages stated in r. 9A should have been strictly applied by the CIT(A) and no reduction should have been given. On the other hand, Shri V. H. Patil, the ld. Representative for the assessee, urged before us that the CIT(A) has done the correct thing. He relied on the decision of the Bombay High Cour....