Net realizable of stock to be taken as value it would fetch on actual sale in future

Brief of the case:

• The ITAT Kolkata in the case of M/s Mahendra Traders held that it is generally accepted prudent practice that the closing stock to be valued at lower of cost or net realizable value. Further, net realizable value means the value which the goods would fetch at the time of actual sale.
• Thus, when there is alteration in contract with the major buyer resulting into fetching lesser sale price in future, the assessee was justified in valuing the stock taking into consideration the r

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