2015 (3) TMI 230

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....ified in reducing the trading addition of Rs. 16,41,193/- to Rs. 1,24,173/- ignoring the fact that total amount of negative balance on various dates was of Rs. 16,41,193/-'' 2.2 The assessee in its C.O. has raised various grounds but the solitary issue emerges out from the assessee's C.O. is as under:- ''That on the facts and in the circumstances of the case, the ld. CIT(A) grossly erred in sustaining an addition of Rs. 1,24,123/- when the trading results are fair and reasonable and complete details supported by supporting material and evidence were placed on record.'' 2.3 The brief facts of the case are that the assessee deals in Seeds, Fertilizers and Pesticides etc. The books of account of the assessee are maintained. During....

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....e of the assessee as unrecorded investment in purchase of stock.'' 2.4 Aggrieved, the assessee preferred first appeal wherein the ld. CIT(A) gave partial relief to the assessee by following observations. ''4.1 The AO observed in his order that on perusal of the stock register it was seen that in many commodities there were a negative balance during the year on many days. This implied that sales were effected without having stock in the books meaning thereby that sales were made from the undisclosed stocks. After considering the reply of the assessee and the documentary evidence filed the AO gave benefit to the assessee wherever he filed the evidence but where he was unable to file any evidence he treated that sale to be from unrecorde....

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....as compared to 9.41% on total turnover of Rs. 1,25,05,850/- in the immediately previous assessment year. It was noticed that out of the 6 defects pointed out by the AO explanation in regard to 4 was accepted. Explanation regarding there being a gap between dates of goods received and date of invoice/ bills received was not accepted by him. The submission of A.R. appears reasonable that given the nature of business goods may have been received and entered in stock register and the bills/ invoices were received and entered on different dates. It is also a fact that there was no discrepancy in stock available and total sales made. Therefore, the alternate plea of the A.R. is accepted regarding making an addition after telescoping and tak....