Addition for higher stock valuation without discrepancy in quantity is unsustainable

HCC Samsung Joint Venture Vs ACIT (ITAT Mumbai)

Held that there is no observation of the AO that quantity of construction work-in-progress is more than the quantity valued as per first set of financial statement. Accordingly, addition deleted

Facts-

AO made addition for the sum of ₹3229.26 lakhs to the returned income, relevant to the construction WIP reported in second set of audited financial statement. It may be noted here that the Assessing Officer did not reject the books of account of the assessee in terms of section 145(3) of the Act.

Conclusion-

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