Difference between book stock and stock given to bank
This query is : Open
31 July 2010
There has been an addition for the differnce between the stock as per books and stock statement given to bank for credit facilities. Is there any judgements for deletion of such additon.???
31 July 2010
THERE IS NO JUDGEMENT.
IF YOU HAVE PROVIDED STOCK STATEMENT TO BANK FOR CREDIT FACLITY ON HIGH I.E YOU HAVE MISLEADING THE BANK TO MAINTIAN YOUR DRAWING POWER AGASINT CREDIT FACLIIIES AGAISNT FAKE STOCK.
IF YOU SAY THAT YOU HAVE PROVIDED CORRECT STOCK TO BANK, IT MEANS YOU HAVE UNDERSTATED STOCK IN BALANCE SHEET FOR REDUCING PROFIT.
I.E AO HAS RIGHT TO MAKE ADDITION ON SUCH DIFFERENCE .
YOU CAN'T SAY THAT BANK STOCK IS WRONG , IF YOU SAY THAT YOUR BANK FACLITIES MAY BE FREEZED AND BANK CAN SUIT YOU AGAISNT FRAUDLENT .
IF YOU HAVE PROVIDED STOCK STATEMENT TO BANK FOR CREDIT FACLITY ON HIGH I.E YOU HAVE MISLEADING THE BANK TO MAINTIAN YOUR DRAWING POWER AGASINT CREDIT FACLIIIES AGAISNT FAKE STOCK.
IF YOU SAY THAT YOU HAVE PROVIDED CORRECT STOCK TO BANK, IT MEANS YOU HAVE UNDERSTATED STOCK IN BALANCE SHEET FOR REDUCING PROFIT.
I.E AO HAS RIGHT TO MAKE ADDITION ON SUCH DIFFERENCE .
YOU CAN'T SAY THAT BANK STOCK IS WRONG , IF YOU SAY THAT YOUR BANK FACLITIES MAY BE FREEZED AND BANK CAN SUIT YOU AGAISNT FRAUDLENT .
02 August 2010
Sir thanks for replying me but for your kind information there are judgements relating to that supporting the same see ACIT vs Jyoti Woolen Mills ITAT (Del) 125 TTJ 810 wherein it was held by the tribunal that addition could not be made on mere comparison of the stock declared to bank and the one shown in the books of accounts. I need more judgements for clarity on the same if anyone knows kindly reply me.
02 August 2010
THANKS FOR UPDATE,
SECTION 69
Where the assessee showed higher stock for availing credit
facility from the bank against hypothecation of stock and
there was no evidence on record to show that the assessee
possessed the higher quantity of stock as declared to the bank,
addition cannot be made on mere comparison of the stock
declared to the bank with that shown in the books of account
ruled the Delhi ‘D’ Bench in ACIT v. Jyoti Wollen Mills (2009)
125 TTJ (Del) 810.
SECTION 69
Where the assessee showed higher stock for availing credit
facility from the bank against hypothecation of stock and
there was no evidence on record to show that the assessee
possessed the higher quantity of stock as declared to the bank,
addition cannot be made on mere comparison of the stock
declared to the bank with that shown in the books of account
ruled the Delhi ‘D’ Bench in ACIT v. Jyoti Wollen Mills (2009)
125 TTJ (Del) 810.
05 August 2010
........?????
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Is this income indian or foreign income?
- ITC temporary reversal and reclaim
- Inventory of finished goods
- Applicable TDS rate for sale of property in Nov 2024
- Confusion around Form 26QB fields
- Tds on building rent monthly
- Quiery in relation to GST liability in case of an advocate who has obtained GST registration.
- RCM INVOICING FROM NOV-2024
- REGARDING 25 AS DATE OF PAYMENT AND DATE OF BOOKING
- Can we claim ITC of Feb-2024 in the month of November-2024 which was not claimed by oversight
- Clarification on Documentation of Paid-Up Capital Contribution by Directors
- TDS under section and rate of TDS
- GST input on scooter purchased
- TDS under section 194Q and TCS under section 206C
- GST input on car insurance and repairs
- GST input on Diwali gift to employee
- GST input on Mobile Handset
- Material and freight in same invoice
- TDS under section 194J inclusive of reimbursement of expenses
- TDS on Material and Labour in same invoice
Trending Online Classes
CAclubindia
