Whether A.O. was justified in invoking section 145 to value closing stock at cost or market price which ever is lower where assessee had adopted the policy of valuing its closing stock at market price only.
Sanjeev Woollen Mills Vs. CIT
Held by hon"ble court that by showing closing stock at market price assessee had earned profit out of itself since the stock remained with the assessee itself. Further,it is a settled position that closing stock is to be vaued at lower of cost and market price. Hence A.O. was justified in invoking provisions of section 145.