TaxTMI 
TaxTMI 
2005 (8) TMI 686
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....nt year 1990-91, whereby the Tribunal allowed the appeal filed by the department in respect of addition of Rs. 5,76,736 made by the Assessing Officer on account of closing stock position in the books of account. 2. The appellant is engaged in the business of glassware and crockery goods as wholesaler and retail dealer. The goods are imported from outside the State which are subject to check at the entry point at Lakhanpur barrier. The matter relates to assessment year 1990-91 relevant to year ended on 31-3-1990. Return of income in respect of aforesaid assessment year was filed by the appellant with the Assessing Officer showing taxable income of Rs. 67,160. Along with return of income, the appellant submitted copy of its final accounts ....
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....the appellant in its inventory had verified stock valued at the cost on 31-3-1990 at Rs. 3.02 lakhs. The Assessing Officer while making the addition held that "since the stock was shown more to the bank by an amount of Rs. 5,76,735 is added back to the income of the assessee". 4. The appellant feeling aggrieved of the order of Assessing Officer filed an appeal before the Commissioner of Income-tax (Appeals), Jammu. On re-examination of the material and the issues arising thereon, the Commissioner deleted the addition by taking into consideration the following facts :- "(i) Goods sold by the appellant were not manufactured in the State of Jammu and Kashmir and were brought from outside the State and were subject to checking by th....
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....r of Income-tax (Appeals), Jammu, before the Income-tax Appellate Tribunal. The Tribunal, vide impugned order dated 14-12-1999, reversed the decision of the Commissioner of Income-tax (Appeals) on the basis of the stock statement submitted to the Bank by the appellant on 15-2-1990. Hence the present appeal. 6. Learned counsel appearing on behalf of the appellant contended that the Tribunal is not justified in law in considering the routine declaration made by the appellant before the Bank for obtaining higher cash credit facility for upholding the addition of Rs. 5,76,736. Further according to learned counsel the Tribunal is also not justified in not taking into consideration the value of closing stock as per books of account as on 31-3-....
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....an amount of Rs. 5,76,736 to the income of the assessee solely on the ground that the assessee itself had made a declaration certifying the declaration of stock in value and weight and the same being valuable piece of evidence can be used against assessee. The Tribunal did not find explanation of the assessee satisfactory in regard to the circumstances under which assessee had made declaration to the Bank in regard to the stock in value and weight. 10. It is true that an admission is no doubt a relevant piece of evidence but it is never conclusive. It is all the more so in the matter of an assessment to tax. It is open to the assessee to explain or clarify under what circumstances it was made or to prove that what was stated did not refl....
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....e Bank reads as under :- " Report for the period ended 15-2-1990 of the stock belonging to Shri Des Raj Gupta & Sons Lakhdata Bazzar, Jammu. Hypothecated as security with Punjab National Bank. S. No. Particulars of Goods Where- lying Quantity Rate Value 1. Glassware W. House DRM Factory Shop 4,75,825.00 2. Crokery W. House & shop 3,10,862.00 3. Hurricane Lantern DRM factory & Shop 10,380.00 4. Goods Shop 48,843.00 Total: 8,45,910.00 Less bills payable 2,70,495.00 Balance: ....