COMMISSIONER OF INCOME TAX Vs. HARYANA MINERALS LTD.

JUDGEMENT

(1.) THIS petition has been filed by the Revenue under s. 256(2) of the IT Act, 1961 (for short the 'Act'), seeking a direction to the Income -tax Appellate Tribunal, Delhi, Bench 'B', New Delhi (for short 'the Tribunal'), to refer the following Court : "Whether, on the facts and in the circumstances of the case, the CIT(A)/ Tribunal was right in law in deleting the addition of Rs. 8,13,090 made by the AO on account of undervaluation of closing stock by changing the method of valuation by the assessee -

(2.) BEFORE approaching this Court, Revenue had filed an application under s. 256(1) of the Act before the Tribunal with

(3.) ASSESSEE , M/s Haryana Minerals Ltd., Narnaul, is an undertaking of Haryana State carrying on the business of mining and manufacture of marble and slate stones. During the course of assessment proceedings for the asst. yr. 1981 -82, it However, later on, it filed a revised return reducing the value of stock to Rs. 9,45,973.24. On being asked to explain the difference of Rs. 8,13,098.11, it was stated that earlier valuation was made on the basis of sale price whereas the valuation as per revised return, was shown on the basis of cost price. The AO noticing that the assessee had been valuing its stock on the basis of market price in earlier years, whereas the valuation in the revised return had been made on the cost price which was lower, observed that method once adopted had to be consistently followed. He, therefore, made the addition of Rs. 8,13,090 to the total income of the assessee on the ground that there was no reason for changing the method of valuation.