Income Tax Department Targets Jewellery Sector Over Misuse of Inventory Valuation Rules

The Income Tax Department has initiated a crackdown on the "jewellery sector over the misuse of inventory valuation rules." The department is investigating a scheme where some jewellers are manipulating their stock valuations to understate profits and evade taxes. This involves using different accounting methods or manipulating the "cost of inventory" to show lower taxable income. The department has intensified its scrutiny of financial statements and inventory records to ensure compliance, sending a clear message that such fraudulent practices will not be tolerated.