TaxTMI 
TaxTMI 
2015 (3) TMI 891
X X X X Extracts X X X X
X X X X Extracts X X X X
....is that the stock report furnished by the assessee though morally bad cannot be a reason for making the addition, particularly when in assessee's own case in respect of the earlier year on the similar set of facts, the matter has been remitted back to the authorities concerned?" 2. This case relates to difference in value of closing stock reckoned on the basis of the value determined by the bank and the value disclosed by the books of account as furnished to the commercial taxes department. Based on the difference in the value as provided to the bank and as reckoned from the books of accounts furnished to the commercial taxes department, the Assessing Officer came to the conclusion as follows :- "Further, physical inventory of stock p....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e as on 31.03.2001 of only Rs. 2,55,10,315/=. In respect of the discrepancy in the stock shown in the return, the assessee was requested to offer explanation. In response to this, the assessee stated through various submissions and petitions that the stock as shown in the return is the correct one and he has been giving inflated figures of stock to the bank for availing higher credit facilities from the bank. 3. On the the basis of the above findings, the Assessing Officer held as under :- "In the assessee's case, the assessee has not maintained proper stock book and even the stock found during the physical inventorisation during the survey does not match with the assessee's book stock. Hence, the case laws quoted by the assessee ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... authorities had accepted the figure of sales, purchases and stock, the Income Tax authorities do not have any justification to tinker with the stock declared before the sales tax authorities and accepted by them. The learned AR also filed copy of the Sales Tax assessment for the year under consideration in which the book results of the applicant have been accepted." 5. The Department, aggrieved by the above order, pursued the matter in appeal to the Tribunal. The Tribunal, taking note of the aforesaid decision in Ananda Metal Corporation case (supra), as also its own order in ITA No.774/Mds/06, held as follows:- "9. We find that the facts in the present case are identical to the one dealt by this Tribunal in I.T.A. No.774/Mds/06 for asse....
X X X X Extracts X X X X
X X X X Extracts X X X X
....nts, we decide both the issues raised in favour of the assessee and against the Revenue." Aggrieved over the said order of the Tribunal, the present appeal has been filed by the Department. 6. When the case was taken up, upon hearing the counsel for the parties, with the consent of counsel on either side, the question of law is reframed in the following manner :- "Whether the sales figures and turnover assessed by the sales tax authority could be relevant for determining the turnover of the assessee and not otherwise?" 7. Heard the learned standing counsel appearing for the appellant/Revenue and the learned counsel appearing for the respondent on the reframed question of law and also perused the materials placed on record. 8. The prima....