ITAT explains rules related to Valuation of closing Stock of Films

CA Sandeep Kanoi Brief facts of the case are that the Assessing Officer observed that the assessee is following conservative method of accounting for valuation of closing stock. The films purchased are shown at cost if the same are sold in the year, the profit or loss on the same is recorded. In respect of unsold films, the same is carried forward as stock at purchase cost in the next financial year. He observed that as the assessee is engaged in the business of distribution of rights of feature films, Rule 9B of the Income-tax Rules, 1962 is attracted in this case. Rule 9B of the Income-tax R...