TaxTMI 
TaxTMI 
2016 (6) TMI 22
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....eby upholding the assessment order 21.12.2010 passed by the Ld. Assessing Officer. 2. That vide order dated 17.12.2015 the Ld. Commissioner of Income Tax (Appeals)-19 has erred in fact and law by holding that the Assessing Officer has correctly made the addition of an amount of Rs. 93,206/- to the income of the assessee on account of undervaluation of closing stock. That in fact and circumstances of the case the assessee has duly explained the valuation of closing stock. 3. That vide order dated 17.12.2015 the Ld. Commissioner of Income Tax (Appeals)-19 has erred in fact and law by holding that Ld. Assessing Officer has correctly made the addition of an amount of Rs. 125000/- received from Rekha Gupta. That in fact and cir....
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....ed that the assessee had included certain shares in closing stock but the value of the same was taken at Rs. nil. According to him, the assessee did not furnish any explanation as to why the value of such shares was shown at Rs. nil and that the shares were appearing in the Demat statement as on 31/3/2008 therefore it was conclusively proved that the assessee was the owner of such shares but he had not shown any value thereof. The value of those shares was shown in the opening stock by the assessee as under : "Name of scrip Qty(nos.) Value(Rs.) Fourth Gen Info 2000 1,780/- Goyal Associates 5000 3,200/- Numero Uno 950 4,541/- S M Dychem 500 5,435/- Somani Cement 2000 11,260/- Western I....
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....was taken as nil and since the closing stock was being valued at cost or market price and as the market price was nil, no value was taken in respect of the said closing stock. In his rival submissions, the ld. DR supported the impugned order passed by the Ld. CIT(A). 7. We have considered the submissions of both the parties and carefully gone through the material available on the record. In the present case it is an admitted fact that the assessee was valuing the closing stock at cost or market price whichever was lower and this practice was followed consistently. In the instant case, it was claimed that in the preceding year and succeeding year, similar valuation has been accepted by the Deptt. and whenever the shares were sold, the pro....
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....pport of the claim, however, the AO treated the same as unexplained because the lender was the wife of the assessee. 10. The ld. CIT(A) after considering the submission of the assessee observed that the assessee could not explain the source of cash deposit in the bank neither in the assessment proceeding nor during the course of appellate proceeding, therefore, the AO rightly made the addition. The reliance was placed on the following case laws : i) Vajubhai Kanani vs. ITO 221 Taxman 140 (Gujarat H.C) ii) Blessing Construction Co. vs. ITO 214 Taxman 645 iii) Umesh Kumar vs. ITO 217 Taxman 13. 11. Being aggrieved the assessee is in appeal, the ld. Counsel for the assessee reiterated the submissions made befor....
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.... is proprietor of M/s. P.K.Gupta & Co. and maintained the cash book in her regular course of business. She deposited a sum of Rs. 1,25,000/- on 14.3.2008 which is evident from page no. 130 of the assessee's paper book. She also furnished her confirmation which has not been doubted, copy of the same is placed at page no. 46 of the assessee's paper book. She also disclosed her address as well as bank and Income-tax ward were she was assessed. Smt. Rekha Gupta also furnished copy of her Income-tax return which is placed at page no. 66 of the assessee's paper book. From the above narrated facts, it is clear that the assessee discharged the onus cast upon him to prove the identity of the depositor, her creditworthiness and genuineness of the tra....