Addition for excessive shortage not sustainable if trading account accepted to be correct

Shree Digvijaya Woollen Mills Ltd Vs CIT (Punjab and Haryana High Court)

Addition for excessive shortage not sustainable if trading account of assessee are accepted to be correct and complete

A perusal of Section 145 of the Income Tax Act shows that income chargeable under the head “Profits and gains of business or profession” or “Income from other sources” shall be computed in accordance with the method of accounting regularly employed by the assessee, and as per proviso, in any case, where the accounts are correct and complete to the satisfaction

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