AO made addition to assessee’s income on account of discrepancy in stock as per books of account of assessee and that shown in bank statements. Tribunal deleted said addition by taking a view that assessee had tendency to show higher value of stock in bank statements in order to enjoy higher cash credit limit. High Court upheld order passed by Tribunal.
PCIT v. Janam Steel and Alloys (2019) 108 taxmann.com 349 / 265 Taxman 552 (Guj.)(HC) Editorial : SLP is granted to the revenue; PCIT v. Janam Steel and Alloys (2019) 265 Taxman 551 (SC)
S. 145 : Method of accounting–Stock valuation-Cash credit limits-Discrepancy in stock as per books of account of assessee and that shown in bank statements–Deletion of addition is held to be justified.