2015 (10) TMI 1866

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....ssee has not filed reconciliation for excess stock is misconceived and is opposed to facts law and circumstances of case. And confirmed by the Ld. CIT(A) is bad in law. The appellant during course of proceedings had explained alleged stock of copper whereas it was guesstimate by excise personnel without weighting each bag. The addition made is on account of mere surmises, conjectures and assumptions. The addition made and sustained by Ld. CIT(A) is bad in law. The AO has erred in facts and in law in charging interest u/s. 234B. As appellant denies its liability for levy of such interest. 3. The order passed by Ld. CIT(A) towards confirmation of excess tock of copper is bad in law. 2. The facts narrated by the Revenue Authorities....

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....d the issue in dispute in para 4 & 4.1 at pages 2 & 3 in his impugned order. For the convenience, we are reproducing the para 4 & 4.1 of the impugned order as under:- "4. Grounds of Appeal No.2(i) & 2(ii) relate to tile grievance of the appellant against the action of the Assessing officer in making an addition of Rs. 21,86,669/- on account of Excess Stock of Copper. It was submitted 011 behalf of the appellant inter-alia that "Addition has been made on the basis of Survey by Excise Department. Basic defects in Survey of Excise Department-(a) No proper Weighment of Stock and (b)Stock was estimated on Guess Work and Eye Estimation. Excess and shortage not considered. If excess and shortage was properly considered there was neither Exce....

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....it is evidence that Gross Profit ratio increased from 4.11% in Fin. Year 2003-04 to 6.37% in Fin. Year 2005-06 and similarly Net Profit ratio increased from 0.07% in Fin. year 2003-04 to 0.16% in fin.year 2005-06. Although there was decline in Turnover over the last two years there was increase. in G.P. & NP rates. Books of account are Audited Report of Auditor is clean. No discrepancy was noticed except alleged Survey of Excise Department. Considering Past History and no discrepancy noticed in Accounts the addition on mere guesstimate and without weighing each Bag the addition made is opposed to facts Law and circumstances of the Case. The addition made is unwarranted and has no relevance to books of account and stock. The addition made ma....