TaxTMI 
TaxTMI 
2015 (10) TMI 1454
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....of the authorities below and the related provisions of the law. The facts in brief are that penalty in question was levied in respect of additional income representing excess stock in trade declared during the action under sec. 133A conducted at the business premises of the assessee's proprietary concern simultaneously with the action under sec. 132 of the Act taken at his residence. The Assessing Officer held that the assessee has satisfied only two of the three conditions mentioned in sub-clause (2) of section 271AAA of the Income-tax Act, 1961. He accordingly held that the assessee has failed to specified as well as substantiate the manner in which the undisclosed income was derived. The Learned CIT(Appeals) has, however, deleted the pen....
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....value and come in different colour, design and makes. The finished goods are produced using different combination of these diverse inputs. The assessee thus has dealt with both raw material and finished goods of thousands of variety which cannot be given any specific nomenclature for record keeping purposes. It was further explained that due to their tiny size and varying numbers, the exercise of counting and keeping track of each and every item is very cumbersome and time consuming. In this back ground, the assessee was not maintaining any stock register as a matter of record for all the years. It was explained that closing stock inventory has been prepared every year on estimated basis without taking the actual physical inventory. These f....