B, a share trader, paid advance tax of 95000 for FY 17-18 on the estimated income of Rs.10 lacs in Dec. Now his income stands just at 2 lacs due to correction seen in share market and closing stock is valued at MV. If it's valued at cost (more), his income stands at 9 lacs. He wants to value at cost and doesn't want IT Refund to avoid scrutiny as he falls under tax audit. As per ICDS , it should be valued at lower of COST or MV. Can he yet value at cost (higher) and pay more tax (by avoiding huge refund )?
CAclubindia
