2012 (9) TMI 799

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....hey are being disposed by this common order for the sake of convenience as under: Assessee's Appeal in ITA No.1006/Ahd/2012 2. The sole ground of appeal is making addition of Rs.7,27,542/- on account of unaccounted purchase made outside the books of accounts. 3. The brief facts of the case are that the appellant had shown closing stock as on 31.03.2008 at Rs. 2,96,267/-. On verification of the closing stock, it was found by the A.O. that valuation of the three items had not been included in the list of the closing stocks. The opening stock position of these three items is as under:-   Nature/description of item Quantity Rate Value Bases of Valuation 1. Fiberisor for Sugar 25 29,064 7,26,600 Purchase Value 2....

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....ssessing Officer, based on auditor's certification is justified and is upheld. The Authorized Representative's alternative plea that specific direction be given, to modify the value of opening stock in AY 2009-10, can be accepted, subject to the following. The closing stock of AY 2009-10 will also be increased by the same amount unless the assessee has shown sale of these particular items during the AY 2009-10. In other words the opening and closing stock of subsequent year, both will be increased by the value of these 3 items i.e. Rs.7,27,542/- unless the assessee establishes that he has sold these items during the year, the value of which is incorporated in the Profit and Loss account and reconciles the quantity tally. In the absence of a....

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.... However, on subsequent verification these three items were found nil. 6. Another side, ld. Sr. D.R. vehemently relied upon the order of the CIT(A) and prayed to confirm it. 7. We have perused the orders of the authorities below and considered the arguments of both parties. It appears that the assessee has not disclosed these three items in the closing stock. The CIT(A) has also confirmed this addition after giving detailed reasonings in his order. The appellant also furnished the inventory of closing stock for A.Y. 07-08 to 09-10. The appellant requested to set aside this issue to the CIT(A) but the issue is related to the closing stock and it requires verification by the A.O. Therefore, we set aside this order to the A.O. for de nov....