Itxa/422/2004 Of The Commissioner Of Income-Tax,Viii,Mumbai v. M/S Serene Diamonds Pvt. Ltd

IN THE HIGH COURT OF JUDICATURE AT BOMBAYORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL NO. 422 OF 2004 The Commissioner of Income Tax ... Appellant-VIII, Mumbai. V/s. M/s. Serene Diamonds P. Ltd.... Respondent Mr. A.N. Kotangale for the appellant. Mr. F.V. Irani with Mr. A.K. Jasani for respondent. CORAM : H.L. GOKHALE &V.R. KINGAONKAR,JJ.DATED : 1st August, 2006 P.C. .Heard Mr. Kotangale in support of thisappeal. Mr. Irani appears for the respondent. Therespondent is engaged in the business of import ofrough diamonds and export of cut and polisheddiamonds.While filing its return, respondentutilised the method of valuation of closing stock ofraw material. That method was held to be a propermethod by the Assessing Officer for computing incometaxable under the Act. All that, the Tribunal hasheld is that if this method is applied while computingincome taxable, the Assessing Officer cannot rejectapplication of the same method for claiming deductionunder Section 80HCC of the Act. This being the view taken by the tribunal, in our view there is nosubstantial question oflaw, which requiresre-consideration. Hence, appeal is dismissed. [H.L. GOKHALE, J.] [V.R. KINGAONKAR, J.]