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      Question

      As per ICDS-II notified under the Income Tax Act, 1961,

      how should inventories be valued for tax computation purposes?
      A At Net Realisable Value (NRV) only Correct Answer Incorrect Answer
      B At cost only, irrespective of realisable value Correct Answer Incorrect Answer
      C At cost or NRV, whichever is lower Correct Answer Incorrect Answer
      D At fair market value as determined by an independent valuer Correct Answer Incorrect Answer

      Solution

      The correct answer is C

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