2010 (2) TMI 76

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.... the Commissioner of Income Tax (Appeals), who had deleted the addition of Rs 1,15,44,926/-, which the Assessing Officer had made on account of undisclosed stock found with the assessee during the course of a survey. 3. We have heard counsel for the parties and have also examined the orders passed by the Assessing Officer, the Commissioner of Income Tax (Appeals) and the Income Tax Appellate Tribunal. 4. We note that the Commissioner of Income Tax (Appeals) observed that the crux of the matter pertains to the genuineness of purchase of Rs 1,46,00,078/- made by the respondent-assessee prior to the date of survey but which were not entered in the purchase account in the financial books. The Commissioner of Income Tax (Appeals) also noted th....

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....h imports are found to be duly made in the Duty Exemption Export Certificate book, which is authenticated by the Customs and Excise authorities prior to the date of survey. The appellant has also submitted the copies of Bills of Entry issued by customs authorities in respect of these goods, which show that the dates of import of these goods are prior to the date of survey and that these goods had been actually learned by customs prior to the date of survey. Further, the export obligation discharged certificate was also issued by the Joint Director General, Foreign Trade, which shows that the goods had been purchased by the appellant before the date of survey and had also been utilized for manufacturing purposes to discharge the export oblig....

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....not the case of the Assessing Officer that there is any discrepancy in the maintenance of the same. The fact that the books of account have been maintained on the computer is not disputed by the Assessing Officer. The facts show that it was only the Trial Balance which was identified by the survey Team." 6. The Tribunal was of the view that the order passed by the Commissioner of Income Tax (Appeals) could not be faulted and that the Assessing Officer's approach was not correct. The Tribunal, inter alia, held as under: "17. The controversy as noted by the ld. CIT(A) is whether claim of the assessee that purchases to the tune of Rs.1,46,00,078/- made prior to the date of survey and claimed to be not entered in the financial books was genui....

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....ough goods were actually received at the factory premises. It is not in dispute that books of accounts of the assessee at the time of survey were incomplete. The assessee later completed books of accounts after incorporating all the purchases and showed that position of stock at the premises and in the books of accounts stood reconciled. This was conveyed by the assessee to the Dy. Commissioner of Income-tax being certified it for vide letter dated 7.2.2000. The same position was maintained by the assessee during the course of assessment proceedings. The assessee had also relied upon the fact that completed books of accounts were audited and supported by report of an Auditor." 7. In our view, the findings returned by the Commissioner of In....