- (1.) Heard Learned Counsel for the parties.
(2.) This writ petition arises out of an order passed by the Commissioner of Income Tax-I, Kanpur, whereby the revision application under Section 264 of the Income Tax Act, filed by the assessee, has been dismissed.
(3.) Challenging the order of the Tribunal, counsel for the assessee contended that it is well settled by the Hon'ble Supreme Court of India in the case of Investment Ltd. v. Commissioner of Income-Tax, Calcutta, 1970 77 ITR 533 as well as in the case of United Commercial Bank v. Commissioner of Income-Tax, 1999 240 ITR 355 that it is always open to an assessee to adopt any method of keeping accounts for the purpose to value his stock-in-trade either at cost price or market price. It has been held that the method of accounting regularly employed can be discarded by the department only if, in the opinion of the taxing authorities, income of the trade cannot be properly deduced therefrom. Similarly, it has been held that if the department has accepted the practice so adopted for previous years, then there must be justifiable reason for not accepting the same in a particular year.;