SUDHIR AGARWAL,J. - (1.) This appeal under Section 260-A of Income Tax Act 1961 (hereinafter referred to as "Act 1961") has been filed by Commissioner of Income Tax, Lucknow (hereinafter referred to as "Revenue") assailing judgment and order dated 08.07.2010 passed by Income Tax Appellate Tribunal, Lucknow Bench, Lucknow (hereinafter referred to as "Tribunal") in Appeal No. I.T.A. No. 170/Luc/2010 for Assessment Year (hereinafter referred to as 'A.Y'.) 2006-07.
(2.) Appeal was admitted on the following substantial questions of law:- "(I) Whether it is necessary that revaluation of closing stock routed through profit and loss account and accordingly Assessing Authority had rightly added the amount of rupees one crore in the income of assessee which has been reversed by Appellate Authorities? (II) Whether any disturbance of closing stock have to be carried out profit and loss account and while reversing the order passed by Assessing Authority, the Appellate Authority and Tribunal committed substantial illegality by not recording finding of each and every issue dealt with by the Assessing Authority?"
(3.) Facts in brief, necessary for adjudication of the dispute, are as under:-;