S.145A No Addition for stock valuation if exclusive method followed

Deviation from stock valuation method prescribed in Sec 145A cannot lead to addition if exclusive method followed

Brief of the case:

The ITAT Kolkata in the case of M/s Stone India Limited held that VAT and CST even if not included in value of closing stock do not result in undervaluation of closing stock because of its corresponding non-inclusion in Opening Stock , Purchases and Sales. Therefore, addition made on the ground of non-inclusion in the value of closing stock cannot be sustained as the same does not result in any understatement of incomes and profits.

Facts of the case:

Please become a Premium member. If you are already a Premium member, login here to access the full content.