J&K HC Upheld Addition as Inflated Stock Statement Given to Bank Showed Higher Quantity & Value

Ajay Food Products Vs ITO and Others (Jammu & Kashmir High Court) The Jammu & Kashmir High Court considered an appeal filed by a partnership concern engaged in the manufacture of soya nuggets from soya beans. The firm had availed a cash credit facility from the State Bank of India by hypothecating stock consisting of raw materials and finished goods and by providing collateral security including factory land, building, and machinery. On 25.09.2000, the appellant submitted a stock statement to the bank on an estimated basis for the purpose of obtaining a higher cash credit facility. In ...