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2018 (3) TMI 372 - AT - Income TaxGP estimation - rejection of books of accounts - undervaluation of stock - Held that:- There is no dispute with regard to the proposition that the assessee would be required to value closing stock either at cost or at market price whichever is lower. The assessee did not adopt cost price. The assessee has adopted sale which could be realized out of the stock. But what was guiding factor to adopt rates. The ld.CIT(A) has observed that during the period when valuation was done rates of these items were quite different in the market. The ld.CIT(A) made reference to those rates in the finding extracted supra, and thereafter held that stock was undervalued by a sum of ₹ 98,10,499/-. We do not find any error in this finding of the ld.CIT(A). More so, it is a revenue neutral issue because whatever addition is being made in the closing stock, it will be opening stock in the next year. If the assessee would fail to realize the value in proportion with the valuation of closing stock, she will claim loss in the next year, and if she acquired higher rate, then profit will be made. Therefore, no interference is called for in the finding of the ld.CIT(A). Disallowance of foreign tour expenses - Held that:- CIT(A) has recorded a categorical finding that expenditure on foreign travel of assessee’s son was not for the purpose of business, hence, it could not be allowed. Before us, the assessee failed to demonstrate business expediency with regard to this expenditure, and how Shri Kenny Thomas and his family have fulfilled objects of business carried out by the assessee. Therefore, we do not find any reason to interfere in the finding of the ld.CIT(A).
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