Nursery business
This query is : Open
20 October 2026
Sir, we are engaged in a nursery business where we purchase plants, grow them, and sell them. Maintaining a detailed inventory or stock register for each plant is practically difficult. Therefore, we maintain only Plants Purchases and Plants Sales in Tally.
In such circumstances, could we face any issues during Income Tax scrutiny? Can the Income Tax Department reject our books of accounts and estimate our profits merely because we do not maintain a detailed stock register?
What minimum records should we maintain to comply with Income Tax provisions and avoid scrutiny-related issues? Kindly advise with reference to the relevant sections of the Income Tax Act and applicable judicial precedents.
In such circumstances, could we face any issues during Income Tax scrutiny? Can the Income Tax Department reject our books of accounts and estimate our profits merely because we do not maintain a detailed stock register?
What minimum records should we maintain to comply with Income Tax provisions and avoid scrutiny-related issues? Kindly advise with reference to the relevant sections of the Income Tax Act and applicable judicial precedents.
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