Undervaluation of closing stock

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This query is : Resolved

babita paliwal (Querist)

03 October 2015 Dear Sir/Madam
one of my clints(tax audited) has received notice u/s 148 for A.Y. 2011-12. in the notice the mistake is under valuation of closing stock . Now I want to file correct return u/s 148 but I don't know where the undervaluation of closing stock should be shown in return . My clint wants to give effect of under valuation of closing stock in return only but not in audited balance sheet and P&L A/c.
Please sugguest me how to deal with this case.

Amol S Joglekar

Amol S Joglekar (Expert)

03 October 2015 01. what was the method of valuation used?

02. Were the quantitative details given in the audit report?

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babita paliwal

babita paliwal (Querist)

05 October 2015 1. cost or NRV which ever is lower
2. the qty details were not given in the audit report.

Amol S Joglekar

Amol S Joglekar (Expert)

05 October 2015 Filing income tax return is NOT auditor's job.

As an auditor, method of valuation as selected by you is acceptable to income tax.

Since quantitative details were NOT given in the audit report, you can ask for the same from the CLIENT.

Based on these details, you can take the call

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