Tax-inclusive valuation requires purchases, sales and inventory...

Tax-inclusive valuation requires purchases, sales and inventory to include tax, duty, cess or fees actually paid or incurred to bring goods or services to their location and condition on the valuation date. Separate accounting for those amounts, even if followed consistently in earlier years, does not replace the statutory requirement. Non-compliance may render an assessment erroneous and prejudicial to revenue. Revision for inadequate enquiry also requires both conditions to be met. Where cash deposits and sales have been examined, an unsupported deposit discrepancy or a general reference to a third-party search without material linking alleged payments to the relevant assessment year does not establish those conditions.