No addition of undervaluation of Closing Stock when AO failed to reject books of accounts

DCIT Vs Damodardas Mohanlal Chokshi (ITAT Ahmedabad) Conclusion: CIT (A) was right in its decision to delete the addition of Rs. 2.92 crore made by AO under Section 69B for alleged undervaluation of closing stock as the books of accounts was not rejected, therefore, the observation of AO that the same were not reliable. Held: Appellant had appealed against the order for Assessment Year 2017-18 passed by CIT(A). In this case, respondent-assessee, filed a return declaring income of Rs. 7,95,73,300/-. The return was processed under Section 143(1) and selected for scrutiny. A notice under Section...