2016 (7) TMI 615

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....L JUDGMENT (PER : HONOURABLE MR.JUSTICE KS JHAVERI) 1. By way of this appeal, the department has challenged order dated 22.6.2007 passed by the Income Tax Appellate Tribunal, Ahmedabad Bench "A" in ITA No.2266/Ahd/2003 for the Assessment Year 1999-2000. 2. At the time of admitting this appeal, this Court has framed following questions of law:- "(1) Whether the Appellate Tribunal was ri....

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....he addition before CIT (Appeals) and the CIT (Appeals) deleted the addition made by AO, which finding is confirmed by the Tribunal by the impugned order. He contended that the Tribunal has committed an error in deleting the addition of Rs. 81,92,710/- made on account of unaccounted stock and the burden of proof is not on the department. He further contended that the Assessing Officer has not commi....

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.... to have maintained, could possible be due the fact of the stock in its godown, and thus entery into the said register(s), being inclusive of unaccounted stock, i.e. which it purchases and sells outside its regular books of accounts; it admittedly also engaging in unaccounted trade, with there being no mention of the maintenance of such registers in its tax audit report. However, the finding of ca....

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....would only lead to a reduction in the figure of unaccounted stock as determined by him, the assessee has only disclosed a higher profit (income) by not claiming the expenditure on the purchase of the goods that stand sold by it, and to that extent. So that a further addition on account of unaccounted purchases would only result in a double addition, even as, at the same time, the non-claim of expe....