Valuation of closing stock at realization value considering rust stock – ITAT remands matter back to AO

GK Steel & Wire Products Vs ITO (ITAT Delhi) The main contention of the assessee is that the value of the opening stock of the assessee has gone down resulting in gross loss of Rs.25,32,724/-. The ld. Counsel submits that this is because due to rust stock and the sales realization was lower than the value of opening stock so that the assessee has suffered loss. The assessee contended that in earlier period the closing stock was valued on purchase price which is not saleable in the market. It was also contended that the assessee has decided to value the stock on realization value of market ...