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Valuation of closing stock

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Querist : Anonymous

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Querist : Anonymous (Querist)
20 June 2013 SIR, A MANUFACTURING CONCERN HAS VALUED ITS CLOSING STOCK AT RS. 10.00 LAC AS AT 31.03.2012.
THE FILE SELECTED FOR SCRUTINY BY INCOME TAX AUTHORITIES AND HAVE POINTED OUT THAT THE CLOSING STOCK IS UNDER VALUED BY RS. 1.00 LAC AND THEY HAVE INCREASED PROFIT BY RS. 1.00 LAC AND TAX DETERMINED ADDING RS.1.00 LAC TO DECLARED NET PROFIT IN RETURN OF INCOME.
MY QUESTION IS IN THE NEXT YEAR OPENING STOCK AS PER BOOKS WILL BE RS. 10.00 LACK. WHETHER THE EFFECT OF RS.1.00 LAC WILL BE GIVEN FOR CALCULATION OF TAX BY I.T. AUTHORITIES IN THE NEXT YEAR OR NOT ?
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Rupesh Jain

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Rupesh Jain (Expert)
22 June 2013 no you can not make increse the value of stock.
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Querist : Anonymous

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Querist : Anonymous (Querist)
27 June 2013 sir it mean that the dept. will take tax 2 times i.e in the year of assessment as well as next following year
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