COMMISSIONER OF INCOME TAX, PATIALA Vs. IMPROVEMENT TRUST

JUDGEMENT

(1.) REVENUE has preferred this appeal under section 260A of the Income -tax Act, 1961 (for short, "the Act") against the order of the Income Tax Appellate Tribunal, Chandigarh Bench 'B', Chandigarh dated 8 -5 -2008 passed in I.T. Appeal No. 809 (Chandi) of 2007 in the case of Asstt. CIT v. Patiala Improvement Trust, for the Assessment Year 2004 -05, proposing to raise following substantial questions of law : -

(2.) WHETHER on the facts and in the circumstances of the case, the ITAT was legally justified in accepting the closing stock as declared in the revised return ignoring the fact that the provisions of section 139(5) of the Act permits revising of return only if there was any omission or wrong statement in the original return and that the said section does not permit revising of return for altogether changing the method of valuation of stock ?

(3.) IT is clear that the revised return was within the prescribed time. The assessee has only made correction by bringing closing stock in consonance with the principle, on which opening stock was valued, so that the income can be correctly arrived at. The view taken by the CIT (A) as well as fee Tribunal cannot be held to be perverse.