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Tax audit on petrol pump

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raviteja kakumani

1 Points Posted on 10 December 2020

Good evening sir,
I was given a tax audit case for a petrol pump.
Every year the evaporation loss (difference between closing stock as per books and dip stock data) is deducted from closing stock as per books and accounted accordingly. But I've got evaporation gain for diesel this time and I cross checked dip data and sales again and also rechecked with the client. Since 2 years they are facing IT Scrutiny. I want your suggestion as to how I can account that evaporation gain. Please kindly help me.

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Quick Summary

A petrol pump owner is facing a tax audit due to an unexpected evaporation gain in diesel stock, which is unusual as they typically deduct evaporation loss. They've double-checked figures and are seeking advice on how to account for this gain, especially as they've been under IT scrutiny for two years. Other users have also reported discrepancies between dip and manual readings.