ITAT allows known Loss on closing stock valuation as per Principle of Prudence

Sanjeev Motwani Vs ACIT (ITAT Mumbai)

Introduction: The case of Sanjeev Motwani Vs ACIT (ITAT Mumbai) revolves around the controversial addition of Rs. 10,01,280/- to the income of the assessee, Sanjeev Motwani, pertaining to the valuation of closing stock for the assessment year 2013-14. This article aims to dissect the court’s decision, especially focusing on how the Principle of Prudence was applied to support the assessee’s valuation of closing stock.

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