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S. 145A requires opening stock to be adjusted
S. 145A inserted w.e.f 1.4.1999 (AY 1999-2000) requires the valuation of purchase and sale of goods and inventory to include the amount of any tax, duty, cess or fee paid for the goods. On the question whether the opening stock as of 1.4.1988 has also to be so adjusted, HELD:
To give effect to s. 145A, if there is any change in the closing stock at the end of the year then there must necessarily be a corresponding adjustment made in the opening stock of that year. This does not amount to giving double benefit to the assessee and would be necessary to compute the true and correct profit for the purpose of assessment.
Note: CIT vs. Mahavir Alluminium Ltd 297 ITR 77 (Delhi) followed.
See Also: Hawkins Cookers vs. ITO (ITAT Mumbai)
Related Judgements
- Hawkins Cookers vs. ITO (ITAT Mumbai)
For purposes of s. 145A, where an assessee follows the procedure laid down by the ICAI and the tax auditor reports in clause 12(b) of Form 3CD of the Tax Audit Report that no adjustment is required to be made on account of s. 145A, the unutilized modvat credit…
