https://www.taxtmi.com/caselaws?id=446342 The ITAT Chennai ruled on multiple issues arising from a survey operation. Regarding stock variation, the tribunal accepted the assessee's explanation that differences arose from comparing cost price (physical stock) with selling price (book stock), rejecting the AO's finding of inflated purchases due to lack of corroborative evidence beyond a director's statement. However, the tribunal sustained additions for unproved purchases based on the director's admission and loose sheets found during survey. For excess stock found during survey, the tribunal upheld the AO's addition, directing it be treated as closing stock. The tribunal deleted additions for inflated purchases and bogus loans, ruling that sworn statements alone without corroborative evidence cannot justify additions, following established legal precedent. en-us Wed, 11 Oct 2023 00:00:00 +0530 Thu, 30 Nov 2023 10:37:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=446342 The ITAT Chennai ruled on multiple issues arising from a survey operation. Regarding stock variation, the tribunal accepted the assessee's explanation that differences arose from comparing cost price (physical stock) with selling price (book stock), rejecting the AO's finding of inflated purchases due to lack of corroborative evidence beyond a director's statement. However, the tribunal sustained additions for unproved purchases based on the director's admission and loose sheets found during survey. For excess stock found during survey, the tribunal upheld the AO's addition, directing it be treated as closing stock. The tribunal deleted additions for inflated purchases and bogus loans, ruling that sworn statements alone without corroborative evidence cannot justify additions, following established legal precedent. Case-Laws Income Tax Wed, 11 Oct 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=446342