The Deputy Commissioner of Income Tax, Corporate Circle 1, Coimbatore. Vs. M/s. Elgi Electric and Industries Ltd.

Parties Involved

Facts Summary

The assessee filed a return of income declaring a total income of NIL after adjusting a business loss of ₹.2,46,305/-. The assessment was completed under section 143(3) of the Income Tax Act, 1961, making an addition on account of the difference in closing stock of ₹.76,28,385/- by adjusting the same against the brought forward business loss, consequently determining the total income at NIL. The assessee preferred an appeal before the Commissioner of Income Tax (Appeals), which was partly allowed. The Revenue filed an appeal before the ITAT, which was dismissed.…

Legal Issues

• 1. Whether the addition made by the Assessing Officer on account of the difference in closing stock is justified?

Judgment Outcome

Decided in favour of Revenue.

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