STOCK VARIATION DEFECT in audit by the department

[SK Krishna]

Hello sirs/madam,

The dealer is an iron and steel wholesaler & distributor with large turnover . During the audit, the department arrived at stock difference/ stock variation defect between physical stock and book stock maintained. Physical stock value was arrived barely on eye estimation only. Please discuss appropriate CASE LAWS to file detailed objections.

Thanks you.

AI Summary

Iron and Steel Wholesaler Challenges Audit Discrepancy Using Case Laws Against Eye Estimation Method A wholesaler and distributor of iron and steel with a significant turnover faced an audit revealing a discrepancy between physical stock and recorded stock, determined through mere eye estimation. The discussion seeks case laws to support objections against this method. A respondent highlighted that eye estimation is insufficient for establishing stock shortage offenses, citing several favorable case laws for the assessee. The original poster expressed gratitude for the timely and precise response, appreciating the assistance provided in addressing the audit issue.