2014 (7) TMI 262

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....kani) 1. Revenue has challenged the judgement of the Income Tax Appellate Tribunal ("the Tribunal" for short) dated 30.9.2013 raising following substantial question of law : "Whether the Appellate Tribunal has substantially erred in restricting the addition on account of excess stock to Rs. 4.07 lacs against Rs. 34.53 lacs made by the Assessing Officer with appreciating the fact that all the di....

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....acted on the ground that physical verification of the stock was not done properly. The Assessing Officer not being convinced on strength of such statement recorded of the Managing Director, made addition of Rs. 34,53,226/on substantive basis holding that excess stock would be taxable for the assessment year 19941995. 4. It was challenged before the CIT(Appeals). CIT(Appeals) deleted the entire ....

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....ssion above, it is held that no addition on account of those statements can be made. Therefore, I am of the view that no addition in assessment order under consideration can be made either on protective basis or on substantive basis as has been made in the case of the appellant and in the case of M/s. Premani Products respectively. In the result,m the addition of Rs. 34,53,226/is deleted and appea....

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....s on account of sales made outside the books of accounts, but we are on the point that there was an incongruity for which an addition is quite reasonable. Owing to this calculation any leakage is covered up. An average rate of Finished, Semi Finished and raw material is 16.14/kg. This is to be applied on 24700 kg. In terms of amount the value comes to Rs. 4,07,303/. The addition as made by the ....