Concurrent factual findings and stock discrepancy sustained addition where Tribunal gave no reasons for rejecting evidence

Unsupported interference with concurrent factual findings on stock variation and suppressed purchases was held unwarranted. The record showed deficit stock, unaccounted inter-State purchases and recovered documents supporting the addition, while the Tribunal accepted the assessee's explanation without discussing the materials or giving reasons for rejecting the findings of the Assessing Officer and the Appellate Assistant Commissioner. The Tribunal's deletion of the equal addition and reduction of the penalty was therefore not sustainable, and the Appellate Assistant Commissioner's order was restored in favour of the Revenue.

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Issues: Whether the Tribunal was justified in deleting the equal addition and reducing the penalty when the material on record showed stock variation and suppressed purchases.

Analysis: The inspection revealed deficit stock and unaccounted inter-State purchases. The Assessing Officer and the Appellate Assistant Commissioner acted on the recovered documents and the stock discrepancy to sustain the addition. The Tribunal, however, accepted the assessee's contention in a cryptic manner without discussing the materials or giving reasons for discarding the concurrent factual findings. In revision, such an unsupported interference with the factual conclusion was unwarranted, especially when the record disclosed inconsistent stands by the assessee and material indicating suppression.

Conclusion: The deletion of the equal addition by the Tribunal was not sustainable. The order of the Tribunal was set aside and the order of the Appellate Assistant Commissioner was restored in favour of the Revenue.

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