Weighted Average Cost method ignored? – Mumbai ITAT sends gold stock valuation addition back for fresh examination

Classic Ornaments Private Limited Vs DCIT (ITAT Mumbai) Weighted Average Cost method ignored? – Mumbai ITAT sends gold stock valuation addition back for fresh examination In a significant ruling involving gold jewellery stock valuation, the Mumbai ITAT set aside an addition of ₹1.36 crore made on account of alleged undervaluation of closing stock, after observing that the lower authorities failed to properly examine the assessee’s method of valuation based on Accounting Standard-2 (AS-2) and ICDS-II. The assessee, engaged in the business of manufacturing and trading of gold ornaments...