Inviting comments on the draft Form No. 6C for implementing the amendment made by the Finance Act, 2023 wrt Sub-section (2A) of the Section 142 of the Income Tax Act, 1961 regarding inventory valuation.
Sub-section (2A) of section 142 of the Income Tax Act, 1961 (“the Act”) provided that if at any stage of proceedings before him, the Assessing Officer, having regard to the nature and complexity of the accounts, volume of the accounts, doubts about the correctness of the accounts, multiplicity of transactions in the accounts or specialized nature of business activity of the assessee, and the interests of the revenue, is of the opinion that it is necessary so to do, he may, with the pre’lious approval of the Pr Chief Commissioner or Chief Commissioner or Pr Commissioner or Commissioner direct assessee to have their accounts audited by an accountant. Form No. 6B has been prescribed in the Income-tax Rules 1962
(“the Rules”) in this regard.
- Vide Finance Act 2023, in order to ensure that inventory is valued in accordance with the various provisions of the Act, sub-section (2A) of section 142 of the Act was amended to enable Assessing Officer to direct the assessee to get inventory valued by a Cost Accountant, nominated by the Pr Chief Commissioner or Chief Commissioner or Pr Commissioner or Commissioner. Assessee is required to furnish the report of inventory valuation in the prescribed form duly signed and verified by the Cost Accountant.
- Relevant amendments shall be carried out in Rule 14A and Rule 14B of the Rules to make the above provision operational. In addition, a draft Form No. 6C (form for inventory valuation report) has been formulated which is enclosed herewith. It is requested that all stakeholders as well as the general public may provide suggestions/ comments on draft Form No. 6C and send them at the email address ustpl3@nic.in latest by 31st August, 2023.
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