https://www.taxtmi.com/caselaws?id=761901 ITAT Chennai dismissed revenue's appeal regarding addition based on difference between closing stock values shown in income return versus bank statement. Assessee had inflated stock values to bank for higher credit limits under open loan system. Court held AO failed to verify actual stock or provide corroborating evidence of unaccounted stock. Burden remained on AO to prove undisclosed income, which cannot be discharged merely by referring to third-party statements unrelated to assessment. Addition by AO was unjustified; CIT(A)'s direction to consider balance sheet stock values was upheld. en-us Wed, 09 Oct 2024 00:00:00 +0530 Tue, 19 Nov 2024 10:01:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=761901 ITAT Chennai dismissed revenue's appeal regarding addition based on difference between closing stock values shown in income return versus bank statement. Assessee had inflated stock values to bank for higher credit limits under open loan system. Court held AO failed to verify actual stock or provide corroborating evidence of unaccounted stock. Burden remained on AO to prove undisclosed income, which cannot be discharged merely by referring to third-party statements unrelated to assessment. Addition by AO was unjustified; CIT(A)'s direction to consider balance sheet stock values was upheld. Case-Laws Income Tax Wed, 09 Oct 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=761901