COMMISSIONER OF INCOME TAX Vs. DYNAVISION LTD

JUDGEMENT

(1.) Assessee is a private limited company. It carries on the business of manufacture and sale of television sets. For the Assessment Year 1987-88 the AO while computing the Assessment under Section 143(3) found that the Assessee had not included in the closing stock the element of excise duty. Accordingly, he added a sum of Rs. 16,39,000/- to the income of the Assessee on the ground of undervaluation of closing stock.

(2.) The question before us is whether the department is right in alleging that the closing stock is undervalued to the extent of Rs. 16,39,000/-

(3.) At the outset, it may be stated, that, it is not in dispute that the Assessee has been following consistently the method of valuation of closing stock which is "cost or market price whichever is lower."