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Change of method for valuing stock is valid if method was as per AS prescribed by ICAI

September 15, 2020[2020] 119 taxmann.com 140 (Chennai - Trib.)
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INCOME TAX: Where assessee during relevant year changed method of valuing finished stock from 'market value' to 'cost or market value whichever was lower' method, since changed method of valuing stock was as per AS prescribed by ICAI, it could be said that change in method of valuing finished stock was bona fide and assessee had rightly applied said method to its closing stock of finished goods and that same was to be applied for valuation of opening stock for that year, however, there was no need to apply said changed method for valuation of stock of finished goods held by assessee at beginning of previous year relevant to impugned assessment year which could be valued as per old method

INCOME TAX: Where assessee changed method of valuing finished stock from 'market value' to 'cost or market value whichever was lower' method and assessee had applied different methods for valuing different components of inventory, if assessee had to change method of valuing inventory in compliance with AS-2 issued by ICAI, then changed method of valuation had to be applied to all components of inventory as prescribed under AS-2 and assessee could not chose method of valuing inventory to apply method to some components of inventory and leaving out other components of inventory

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