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scrutiny

21 November 2018

AO wants to make addition on account of higher valuation of closing stock when compared with opening stock RS.6000, purchase 7200, and sale Rs.6800 quintal price of moong. Closing stock Rs.7800 for bank credit is explained to him.

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3 Replies

Y GOPI REDDY (GREAT POLITICAL LEADER) (378 Points)
Replied 21 November 2018

please give a little more clarity of question

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nagaraj kadlaskar (79 Points)
Replied 21 November 2018

Closing stock is lesser in quantity than previous year. Notice given to explain the reason for low closing stock. It is explained that the total stock in hand during this year was very less. So the closing stock was very less after maximum sales. For bank loan from current account, I have taken closing stock value at a much higher rate. Without comparing with last year, the closing stock ratio is more this year. But the low quantity of closing stock is taken at a higher valued taking a higher price, that is only to show to the bank a fair stock position. Issue was comparable low closing stock, which is explained, but even this stock value is being treated wrong.
O.S. price. 6000. qtl
purchases. 7000. qtl
Sales. 6700. qtl
These are actual value. Closing stock is taken at Rs.7800 qtl.