Kolkata Court June 1997 Judgments

Radharani Tea and Estates (P) Ltd. Vs. Deputy Commissioner of Income T ...

Court: Kolkata

Reported in: (1998)61TTJ(Cal)177

ORDERP.J. Goradia, Vice-PresidentThis appeal arises from the order dated 30-4.1992, passed by Shri U.P. Singh, Commissioner of Income Tax(A)-XIV, Calcutta, in Appeal No. 3/.19/CIT(A) XIV/1991-92.2. The issue involved here is, whether an assessee, who has changed the method of valuation of the closing stock, is also entitled to claim appropriate adjustment in the value of the opening stock on changed basis of valuation of closing stock.3. The assessee is engaged in the plantation and production of tea. It is regularly assessed to tax for last several years. For the purpose of accounts, it follows calendar year as the previous year and for our purpose the previous year starts from 1-1-1987, and ends on 31-12-1987. Unit 31-12-1986, the assessee's closing stock of tea was valued on cost basis. In doing so, it was not including the element of depreciation, interest on Nabard loan and also some other element of cost. However, while valuing the closing stock as on 31-12-1987, the above three ...