2013 (8) TMI 140

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....questions of law : (i) Whether, on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal is right in law in deleting addition of Rs.35,07,068/- made by the Assessing Officer and confirmed by the Commissioner of Income-Tax (Appeals)-IV, Surat, on the account of undervaluation of the closing stock ? (ii) Whether, on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal is right in law in deleting disallowance of Rs.4,99,838/- made by the Assessing Officer and confirmed by the Commissioner of Income-Tax (Appeals)-IV, Surat ? (iii) Whether, on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal is right in law in reversing the findings recorded by the....

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....Officer. Any objection raised by the Assessing Officer was against the market value determined by the assessee. The onus is on the assessee to prove that the market value of the stock is less than the cost but it is a case where there is no independent evidence available which may confirm the market value. In the case of rough diamonds it is only the estimate, which can work out by the expert. If the Assessing Officer was not satisfied with the market value taken by the assessee, he could have taken the assistance of the expert but the Assessing Officer merely rejected the method of valuation consistently followed by the assessee and accepted by the Revenue in the earlier year and hence without obtaining any expert's opinion on the subject ....