10 April 2009
The assessee does not maintain a detailed stock record. however monthly stock statement is given to bank for maintaining CC limit. The stock declared to bank is very high as compared to the actual stock (the stock declared is very high to maintain high CC level)....in such a case while auditing the books can we adopt an altogether different valuation than what is given to the bank? as mentioned earlier no stock records are maintained by the dealer....only record available w.r.t. stock is the statement given to the bank...can we entirely ignore that statement?
10 April 2009
The income tax department has given an indication that if the company is submitting stock statements to the Bank the same stock will be considered for arriving at the closing stock and profit of the company threon. So you should be very careful if you are taking some other figure. Even if is more or less also you have to explain to the department.
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