10 September 2011
During the assessment, income tax officer increased the value of closing stock and levy the tax on it for the assessment year 2008-09 in previous year 2010-2011. Whether this increased value of closing stock can be included in opening stock of the assessment year 2011-2012 for the proprietary concern. Please quate the relevent case law, with details.
10 September 2011
The increased value can be added in op. stock for a.y. 10-11 and not in a.y. 11-12 directly, unless portion of that stock was still in op.stock for a.y. 11-12
13 September 2011
There must be some basis for increase in stock by the AO. If the value of closing stock has been increased the same amount is to be added to the closing stock.
In case any method of valuation of closing stock has been adopted by the AO then the same method is to be adopted for valuation of opening stock for the FY 2010-11.
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