COMMISSIONER OF INCOME TAX Vs. HOOLUNGOOREE TEA CO

JUDGEMENT

(1.) THE Tribunal has referred the following question of law under s. 256(1) of the IT Act, 1961, to this Court :

(2.) IN this case, the assessment year involved is 1978-79 for which the relevant year of account is the calendar year 1977.

(3.) THE CIT(A) deleted the addition by observing, inter alia, that 'by changing over to this method of valuation, the assessee-company appears to have adopted the proper method of valuation of closing stock. The ITO has not brought any relevant material to prove that the change in the method of accounting was not bona fide'.