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2013 (12) TMI 1253 - ALLAHABAD HIGH COURTPenalty for concealment of income - Undervaluation of closing stock - Held that:- The assessment was not based on estimation - The assessee had concealed the income by reducing the value of the closing stocks at absurdly lower rate, which was much less than the purchase price without any evidence or material to show that the stock of foodgrains had deteriorated to such an extent, that the valuation would be lesser than the purchase price - The AO applied the lowest of the purchase rates for each of the commodities constituting the assessee's closing stock as obtaining in the month of its purchase - The AO did not estimate such value - In the absence of any other material produced by the assessee he accepted the lowest of purchase price as the value of the closing stock - Decided against assessee.
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