Return return accepted by Sales Tax Dept binds income-tax authorities

Aruljothi Exports Private Limited Vs ACIT (ITAT Chennai) Introduction: The case of Aruljothi Exports Private Limited vs. ACIT (Income Tax Appellate Tribunal, Chennai) revolves around the power of the Income Tax Department to scrutinize sales tax returns accepted by the Commercial Tax Department. Analysis: The appellant, Aruljothi Exports Private Limited, challenged an addition made to their income on account of stock valuation discrepancy. The Assessing Officer (AO) alleged a shortage in closing stock and rejected the appellant’s claim of damage due to rain and flood. The AO also disrega...