COMMISSIONER OF INCOME TAX COIMBATORE Vs. B AMRITHALAKSHMI

JUDGEMENT

(1.) THESE appeals are filed under Section 260a of the Income tax Act, 1961 by the Revenue, against the order of the Income Tax Appellate tribunal, Madras Bench'b', Chennai in I. T. A. Nos. 2043 & 2044 (Mds)/96 dated 24. 02. 2002 raising the following substantial questions of law:- 1. Whether in the facts and circumstances of the case, the Tribunal was right in holding that the switch over from valuation as per market price to cost price was correct, being a substitution of one method by another scientific method? 2. Whether in the facts and circumstances of the case, the Tribunal was right in holding that the assessee was right in changing over the method of valuation, when it does not reflect the true picture of profits and gains?

(2.) THE facts leading to the above substantial questions of law are as under: THE assessee is a dealer in shares. THE relevant assessment years are 1992-93 and 1993-94 and the corresponding accounting years ended on 31. 03. 1992 and 31. 03. 1993 respectively. For the assessment year 1992-93, the assessee filed Return of income on 24. 02. 1994 admitting a total income of Rs. 3,85,540/ -. THE Return was processed under Section 143 (1) (a) of the Income-tax Act ("act" in short) and notice under Section 143 (2)was issued. Later the assessment was finalised under Section 143 (3) of the Act determining the total income at Rs. 11,91,910/ -. For the assessment year 1993-94, the assessee filed Return of income on 01. 02. 1995 admitting total income of Rs. 3,23,960/ -. THE Return was processed under Section 143 (1) (a) of the Act and notice under Section 143 (2) was issued. THE assessment was completed as "n. A. " for the said assessment year. For both the assessment years, the assessee changed the method of valuation of closing stock of shares from market price to cost price. THE Assessing Officer was of the view that the valuation of the shares held as stock in trade has to be valued at market price only as against the claim of the assessee to value at cost. Aggrieved by the orders, the assessee filed appeals to the Commissioner of income-tax (Appeals ). THE C. I. T. (A) decided the cases in favour of the assessee and held that the valuation of the shares held as stock in trade by the assessee is correct. Aggrieved, the Revenue filed appeals to the Income-tax appellate Tribunal ("tribunal" in short ). THE Tribunal dismissed the appeals and confirmed the orders of the C. I. T. (A ). Hence the Revenue preferred the present tax cases.

(3.) IN view of the foregoing reasons, no substantial questions of law arise for consideration of this Court and accordingly, the tax cases are dismissed. No costs. .