In an Income Tax Appeal, the Bombay High Court dismissed the Revenue's challenge to the Income Tax Appellate Tribunal's order. All substantial questions of law regarding a change in stock valuation methodology were found factually unfounded.
No order as to costs.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
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itxa.1159.12.22.doc
kps
IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION
INCOME TAX APPEAL NO.1159 OF 2012
Commissioner of Income Tax.
..Appellant
-Versus-
M/s Hinduja Estate Developers.
..Respondent
Mr.Arvind Pinto, for the Appellant.
CORAM : S.C. DHARMADHIKARI AND A.K. MENON, JJ.
DATE : 26th September, 2014
P.C.
1 This Appeal by the Revenue challenges the order passed by the Income Tax Appellate Tribunal in Income Tax Appeal No.3820/Mum/2008 dated 29.07.2011. The Assessment Year is 20022003. The only two questions which have been pressed as substantial questions of law are in the backdrop of change in the methodology of valuation of closing stock adopted by the Assessee. The Tribunal as a matter of fact found that new method was adopted to value the closing stock as universally recognized and accepted mode of valuation and it is because of the report of the registered Valuer. That report indicated that the market price of the stock of real estate was lower than its cost. That is how the change in the method of valuation of closing stock was adopted. That has been found to be bonafide by both the Tribunal and the Commissioner of Income Tax (Appeals). Therefore, the findings of fact rendered in paragraph 9 of the order under challenge are consistent with
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the material placed on record. They do not raise any substantial question of law. The Appeal is, therefore, dismissed. No order as to costs.
(A.K. Menon, J)
(S.C. Dharmadhikari, J)
Commissioner of Income Tax
M/s Hinduja Estate Developers
S.C. Dharmadhikari
A.K. Menon
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
