Validity of addition for Undervaluation/Understatement/ Shortage of closing stock

Shyam Cotsyn India Ltd. Vs ITO (ITAT Ahmedabad)

Understatement of stock or unrecorded sale

If the assessee has overvalued its closing stock of the earlier assessment year which suggests that amount of profit was increased by that amount or the loss was decreased by the same amount of that assessment year. As such the effect of the closing stock of the earlier assessment year has already been given effect in that particular year which cannot be challenged in the year under

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