Stock Figures Given to Bank cannot be Sole Basis for Income Addition, Rules ITAT

Raj Kumar Puglia Vs ITO (ITAT Kolkata) Kolkata: In a decision providing clarity on how discrepancies in stock reporting should be treated for income tax purposes, the Income Tax Appellate Tribunal (ITAT), Kolkata bench, has ruled that an addition to a taxpayer’s income cannot be made solely based on a difference between the stock disclosed in audited accounts and higher stock figures presented to a bank for securing credit facilities. The ruling came in the case of Raj Kumar Puglia, who appealed against an order from the National Faceless Appeal Centre (NFAC), Delhi, acting as the Commis...