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2009 (8) TMI 101 - SC - Income TaxAssessing Officer made an addition to the value of the closing stock on the ground that the assessee had suppressed the work-in-progress and as a result the total income of the assessee stood increased - The assessee opted for the Kar Vivad Samadhan Scheme, 1998, (KVSS) and paid the tax payable on the basis of the increased income - Accordingly, the assessee herein moved an application under section 154 requesting the Assessing Officer to give consequential effect to the order passed earlier - The Assessing Officer rejected the application – Held that application for rectification for consequential order is valid so AO ought not to have rejected the application for rectification u/s 154 – Further, it is the fundamental principle of accountancy that the figure of the closing stock of the earlier year has to from the opening stock of the next accounting year.
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