C.I.T., UDAIPUR vs M/S. HINDUSTAN ZINC LTD.

The Supreme Court held that the Income Tax Appellate Tribunal (ITAT) was justified in allowing the assessee's method of valuing closing stock of zinc concentrate at the London Metallic Exchange (LME) price despite no export sales during the financial year 1995-96. The Court emphasized that the method of accounting should reflect the economic reality and that the accumulated stock was intended for future export. The appeal by the Department was dismissed, affirming the ITAT's decision to delete the additions made to the income of the assessee.