V. M. Salgaocar & Brothers P. Ltd., ... vs Assessee on 31 October, 2013
CIT as well as CIT the Assessee agreed to revise valuation of
closing stock as on 31.3.2006. It was contended that the Assessee is
continuously maintaining the same stock so that whenever the Respondent nos.
14 & 29 as per the Hon'ble High Court order ask for the balance quantity, it can
be sold to them. Reliance was also placed on the decision of the Hon'ble
Supreme Court in the case of CIT vs. Bannari Amman Sugar Mills Ltd., 349
ITR 709 in which it was held that the closing stock of incentive sugar has to be
14 ITA Nos.206 ,207,220&221/PNJ/2013
(Asst. Years :2006-07 & 2007-08)
valued at the levy price which was less than the cost price as the Assessee has to
sell 60% of the sugar manufactured by him at the levy price.