IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.N.RAMACHANDRAN NAIR & THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM WEDNESDAY, THE 19TH AUGUST 2009 / 28TH SRAVANA 1931 ITA.No. 1367 of 2009() ---------------------- ITA.265/COCH/1999 of I.T.A.TRIBUNAL,COCHIN BENCH .................... APPELLANT ----------------------------- THE COMMISSIONER OF INCOME TAX, COCHIN. BY ADV. SRI.P.K.R.MENON,SR.COUNSEL, GOI(TAXES) SRI.JOSE JOSEPH, SC, FOR INCOME TAX RESPONDENT(S): --------------- M/S.TRANSFORMERS & ELECTRICALS KERALA LTD., ANGAMALLY. THIS INCOME TAX APPEAL HAVING COME UP FOR ADMISSION ON 19/08/2009, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: C .N. RAMACHANDRAN NAIR & C. K. ABDUL REHIM, JJ. -------------------------------------------- I.T.A. No. 1367 OF 2009 -------------------------------------------- Dated this the 19th day of August, 2009 JUDGMENT Ramachandran Nair, J. The respondent is a Government of Kerala company engaged in manufacture and sale of transformers. The issue raised pertains to change in valuation of finished products adopted by the assessee at net realisable value or cost price whichever is lower. The department's case is that the assessee has been following the method of valuation of finished products at contract price, less royalty, sales commission carriage forward and cost of materials to be issued and not at actual cost. In fact it is seen that the assessee has furnished reason for change of method of valuation on account of adverse remarks written by statutory auditors every year. Both the first appellate authority as well as the Tribunal felt that the change in method of valuation adopted by the assessee is justified particularly because in similar case reported in P. BALARKSIHNA, CIT V. TCC LTD., 243 ITR 284, this Court upheld the claim of the assessee in that case, which is again a public 2 sector undertaking under the control of Government of Kerala. We do not find any substantial question of law arising from the findings of the Tribunal in favour of the assessee. Consequently appeal is dismissed. (C.N.RAMACHANDRAN NAIR) Judge. (C. K. ABDUL REHIM) Judge. kk 3