https://www.taxtmi.com/caselaws?id=756978 The ITAT Delhi allowed the assessee's appeal against addition made for excess stock found during search. The AO relied on statements from the General Manager and Director to determine excess stock by comparing physical stock with book stock. The Tribunal found that the stock reconciliation process between factory and head office typically takes several days, and materials received up to 24.03.2021 could not be entered in books due to ongoing search activities. The finished goods identified were produced from accounted raw materials and represented normal manufacturing inventory, not unaccounted stock. No incriminating evidence of unaccounted purchases or sales was found, making the addition unsustainable. en-us Fri, 02 Aug 2024 00:00:00 +0530 Tue, 13 Aug 2024 07:07:27 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=756978 The ITAT Delhi allowed the assessee's appeal against addition made for excess stock found during search. The AO relied on statements from the General Manager and Director to determine excess stock by comparing physical stock with book stock. The Tribunal found that the stock reconciliation process between factory and head office typically takes several days, and materials received up to 24.03.2021 could not be entered in books due to ongoing search activities. The finished goods identified were produced from accounted raw materials and represented normal manufacturing inventory, not unaccounted stock. No incriminating evidence of unaccounted purchases or sales was found, making the addition unsustainable. Case-Laws Income Tax Fri, 02 Aug 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=756978