2012 (5) TMI 633

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.... Respondent : Sh. Padam Bahl, CA ORDER PER BENCH: This appeal of the Revenue arises from the order of the CIT(A), Amritsar, dated 12.07.2011 for the assessment year 2007-08. 2. The Revenue has raised following grounds of appeal: "1. On the facts and in the circumstances of the case the Ld. CIT(A) has erred in deleting the addition made by the AO at Rs. 10,07,595/- by invoking ....

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....of stock was filed before the AO except attributing it to a clerical mistake. 4. On the facts and in the circumstances of the case the Ld. CIT(A) has failed to appreciate that the burden to prove that the quantity of stock given in the statement furnished to the bank was correct, had been on the assessee in view of the provisions of section 69 of the Income Tax Act, 1961. 5. On t....

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.... On being asked, the assessee's above mentioned banker have confirmed that cement worth Rs. 10,72,575/- towards 4704 bags of cement hypothecated to the bank as on 31.3.2007 which gave a vast variation of Rs. 10,07,595/- ( as per information supplied by assessee's bankers as on 31.03.2007 at Rs. 10,72,575 (4704 bags @ Rs. 228/- per bag) minus closing stock valued as per closing stock in the trading....

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....ord that the purchases have been inflated or suppressed so as to show under valuation of the closing stock. The assessee all along had been admitting of exaggerated reporting of its closing stock of cement to its bankers to secure over-draft limit. Therefore, the AO was not justified in making addition under section 69 in view of the decisions of various courts of law relied upon by the Ld. CIT(A)....