TaxTMI 
TaxTMI 
2010 (1) TMI 769
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....M. Bhatt for the appellant. 3. It was submitted that the stock statement was compared with the details of stock filed by the assessee. It was revealed that the purchases were not genuine. Therefore, a detailed show-cause notice under s. 142(1) of the IT Act was issued dt. 3rd March, 2004, which has been referred to in the assessment order. The assessee submitted the details to clarify on the queries raised. Learned counsel Mrs. Bhatt submitted that in the months of April and June, 2000, the stock in terms of quantity given to the bank is more than appearing in the books of accounts, and for all other months, the stock as given to the bank is less than the stock as per books of accounts, which would suggest that the purchases were no....
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.... are not found to be genuine, the appeal ought to have been allowed and therefore the order passed by the CIT(A) and the Tribunal is erroneous. Learned counsel Mrs. Mauna Bhatt has emphasized that the Tribunal has committed an error that it was for the AO to establish, which he has failed. 4. Though the submissions have been made referring to these aspects, a close perusal of the orders passed by CIT(A) as well as the Tribunal would make it very clear that the AO had issued a detailed show-cause notice which is reflected in the assessment order calling upon the assessee to give the details and submit the explanation, the assessee has complied with the same and submitted the details. Not only that but in response to the query, he has....
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....ected to delete addition of Rs.15,56,571 made on account of stock difference between books of account and statement given to the bank." 5. The much emphasis given by learned counsel Mrs. Mauna Bhatt that the Tribunal has erred in making this observation that it was for the AO to establish that the sale is not genuine and the observation that the AO has failed to establish any unaccounted purchases outside the books of accounts to establish that the stock as per books is incorrect, is contrary to the material on record when admittedly the statement before the bank is different than the books of account. However, this submission referring to this observation has to be considered in light of the entire discussion wherein the Tribunal h....