Inflated Stock Statement to Bank Justifies Income Addition as Practice Held Commercial Immorality: J&K HC

Advertisement Ajay Food Products Vs ITO (Jammu & Kashmir High Court) The Jammu & Kashmir High Court dismissed the appeal challenging an addition made by the Income Tax Department based on discrepancies between stock statements submitted to a bank and the stock recorded in the books of accounts. The assessee, engaged in manufacturing soya nuggets, had furnished inflated stock figures to the bank to obtain a higher cash credit facility, claiming the figures were only estimates and not reflective of actual stock. However, the Assessing Officer found substantial differences in both quan...