2012 (11) TMI 416

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....unds of appeal of the assessee read as under: "1. In law and in the facts and circumstances of the appellant's case, the CIT(A) has grossly erred in upholding the addition of Rs.19,33,443/- made by the AO on account of alleged suppression of purchases of maida of 113.355 MT valued at Rs.10,19,553 and soji of 98.516 MT valued at Rs.9,13,890/-. 2. In law and in the facts and circumstances of the appellant's case, the learned CIT(A) has grossly erred in upholding the addition of Rs.7,42,391 made by the AO on account of alleged surplus/shortage of closing stock." 3. The learned counsel for the assessee submitted that there was a mistake in the accounts statement and the audited quantitative details of raw-material and finished products....

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....also perused the copy of the accounts statement of the closing stock as per the books of the assessee, and the details of the closing stock of raw-material and finished goods in quantity as per the audited accounts filed in the compilation filed by the assessee. We have also perused the copy of the reconciliation statement of the quantitative details as per the statement of accounts and as per the audited accounts of the closing stock of raw-material and the finished goods, as filed by the assessee at page no.120 of the compilation before us. We find that the assessee has tried to explain the reasons for the difference in the two statements of accounts of the closing stock in the written submissions filed before the CIT(A). However, in such....

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....he penalty is imposed on the addition, which may be sustained by the Tribunal. The learned counsel for the assessee submitted that the detailed explanation was filed by the assessee and there is no material brought on record to suggest the explanation of the assessee was not bona fide. He relied on the order of the CIT(A). 7. We have considered rival submissions and have perused the orders of the AO and the CIT(A). We find that it was the assessee who has filed both the accounts statements with regard to quantitative details of the raw-material and finished goods in various products and they were filed by the assessee at the time of assessment itself. The assessee has filed a reconciliation statement and has tried to reconcile the two st....