IT authority cannot direct assessee to maintain its accounts in a particular manner

DCIT Vs. Rustomjee Ever shine Joint Venture Private Limited (ITAT Mumbai) We may recapitulate the following observations of the Hon’ble Supreme Court in Investment Ltd. Vs. CIT(supra) : “A taxpayer is free to employ, for the purpose of his trade, his own method of keeping accounts, and for that purpose to value his stock-in-trade either at cost or at market price. A method of accounting adopted by the trader consistently and regularly cannot be discarded by the Departmental Authorities on the view that he should have adopted a different method of keeping account or of valuation. The method...