Commissioner Of Income Tax, Udaipur vs Hindustan Zinc Ltd

The Supreme Court held that the Income Tax Appellate Tribunal (ITAT) was justified in allowing the assessee to value the closing stock of zinc concentrate at the London Metallic Exchange (LME) price despite no export sales occurring in the financial year ending 31.3.96. The Court emphasized that the method of accounting adopted by the assessee was reasonable given the circumstances, including the inability to consume the stock domestically and the intention to export in subsequent years. The appeal by the Department was dismissed, affirming the ITAT's decision.