ITA No.822 of 2008 1
IN THE HIGH COURT OF PUNJAB AND HARYANA AT
CHANDIGARH.
Date of Decision:-13.1.2009
Roxy Industrial Corporation.
---Appellant
Versus
Commissioner of Income-Tax (Central), Ludhiana.
---Respondent
CORAM:- HON’BLE MR.JUSTICE J.S.KHEHAR
HON’BLE MR.JUSTICE NAWAB SINGH
Present:- Mr.Pankaj Jain, Advocate for the appellant.
J.S.KHEHAR, J.(ORAL)
Through the instant appeal, the appellant has impugned the
order passed by the Income Tax Appellate Tribunal dated 14.11.2007
(Annexure A3).
The order passed by the Income Tax Appellate Tribunal dated
14.11.2007 is based on the decision rendered by the Apex Court in C.I.T.
Versus British Paints India Limited, 188 ITR 44 wherein it has been laid
down that a discretion is vested with the assessee to determine, the value of
the stock, either on the basis of the actual costs thereof or at the market
value thereof, with a further discretion to calculate the value of stock on the
basis of the chosen option. By exercising the above option, the assessee has
the right to choose the method by which two stocks are assessed at the lower
value. In so far as the assessment of the cost at market value is concerned,
the same can be adopted to show lower value of the stock in hand if the
market value of such stock is shown to have drastically fallen. Since in so
far as the present controversy is concerned, it is not the case of the appellant
ITA No.822 of 2008 2
that the market value of the stock in question had drastically fallen, there
was no option at the hands of the assessee except to depict the market value
of the stock on the basis of valuation of stock in trade at cost.
Rather than adopting the sole option, which was available to
the assessee, the assessee alleged that he had sold the stock as scrap/junk
and had assessed the value thereof at the price realized by selling the stock
as scrap/junk. This option was clearly not open to the assessee in terms of
the decision rendered by the Apex Court in the case of British Paints India
Limited’s (supra).
In view of the above, we find no merit in the instant appeal and
the same is dismissed.
(J.S.Khehar)
Judge
(Nawab Singh)
13.1.2009 Judge
AS