TaxTMI 
TaxTMI 
2012 (8) TMI 15
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....first effective ground of Revenue's appeal reads as under: 1. The Ld. CIT(A)-XX, Ahmedabad has erred in law and on facts in deleting the addition of Rs.15,00,210/- made by the AO by on account of the excess stock found during the course of survey, without properly appreciating the facts of the case and the material brought on record by the AO. 2.1. The ld.DR submitted that it is a survey case wherein the excess stock of Rs.15,00,210/- was found and this fact was accepted by the assessee at the time of survey. He submitted that the assessee could not reconcile the excess goods with the goods claimed to have been received by the assessee on consignment basis and, therefore, the addition was rightly made by the AO. He relied on the decision ....
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.... of purchase and sale of sarees in retail and a survey was conducted on 11.2.2005 by the Department at the business premises of the assessee. During the course of survey, estimate of the value of the stock was made by the survey team and excess stock of Rs.15,00,210/- was calculated as a result of the physical verification of the stock by the survey party. The assessee admitted the value as determined by the survey team at the time of survey. However, the assessee during the course of assessment proceedings, has claimed that the value of the goods found at the time of survey was calculated on adhoc basis and the rough counting of stock was made by the survey team and the valuation of the stock was on approximate basis only. We find that the....
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.... excess stock found at the time of survey, could not be sustained in the hands of the assessee. However, we are of the view that the ends of justice shall be met if the addition on account of excess stock found during the course of survey is restricted to Rs.5 lacs as against the addition of Rs.15,00,210/- made by the AO and we direct accordingly and the Ground No.1 of appeal of the Revenue is partly allowed. 5. Ground No.2 of Revenue's appeal reads as under:- 2. The Ld.CIT(A)-XX, Ahmedabad has erred in law and on facts in deleting the addition of Rs.94,465/- made by the AO on account of unexplained packing expenses, without properly appreciating the facts of the case and the material brought on record by the AO. 5.1. We have heard the p....