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of <h1>Tribunal partially allows Assessee's appeal, upholds addition under Sec. 69A</h1> The Tribunal partly allowed the Assessee's appeal, upholding the addition of Rs. 16,49,910/- under Sec. 69A of the IT Act. The Tribunal rejected arguments ... - Issues Involved:1. Validity of the assessment order.2. Addition of Rs. 35,74,910/- u/s 69B of the IT Act.3. Levy of interest u/s 234B and 234C.Summary:1. Validity of the Assessment Order:The assessee contended that the assessment order was incorrect, improper, irregular, opposed to facts and circumstances of the case, and opposed to the law. The Tribunal upheld the assessment order, agreeing with the CIT(A) that the closing stock declared to the Bank by the Assessee could not be disregarded as not true.2. Addition of Rs. 35,74,910/- u/s 69B of the IT Act:The assessee argued against the addition of Rs. 35,74,910/- as unexplained investment u/s 69B, claiming the stock statement given to the bank was contrary to the real situation. The Tribunal noted that the burden was on the Assessee to show that the stock statement given to the bank was not correct. The Tribunal agreed with the CIT(A) that the Assessee failed to show facts or circumstances proving the stock statement was false. The Tribunal examined the alternative claim and concluded that the appropriate section applicable was Sec.69A, not Sec.69C. The Tribunal found that the closing stock as on 31.3.2004 of Rs. 19,25,000/- was explained from the opening stock on 31.3.2003, and the remaining sum of Rs. 16,49,910/- was unexplained, warranting an addition u/s 69A.3. Levy of Interest u/s 234B and 234C:The assessee contended that the levy of interest of Rs. 5,35,965/- u/s 234B and Rs. 777/- u/s 234C was incorrect. The Tribunal did not specifically address this issue in detail, but the overall decision to partly allow the appeal implies that the interest levies were not set aside.Conclusion:The appeal of the Assessee was partly allowed, with the Tribunal sustaining the addition of Rs. 16,49,910/- u/s 69A and rejecting the arguments regarding the source of funds from the OD account. The Tribunal upheld the assessment order and the findings of the CIT(A) regarding the stock statement given to the bank.
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