2014 (12) TMI 1246

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.... period 01.04.1994 to 08.08.2000, the revenue has preferred the present Tax Appeal. 1.1 This appeal was admitted by this Court on 27.06.2007 for consideration of the following substantial question of law:                 "Whether on facts and circumstances of the case the Income Tax Appellate Tribunal was right in law in deleting the addition made on account of difference in stock statement as furnished before the bank as compared to shown in books of account for availing higher credit facility?" 2. There was a search in the premises of the respondent wherein incriminating documents were found. On comparison of stock statement furnished to bank for obtaining....

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....09, however, no physical verification and counting of the stock took place during such visit and even otherwise, the Bank Managers report indicates that 3000 tonnes of Coil was already included in the stock of the month of March 2009 and because of such inclusion, the stock position of March 2009 has shown the increase in quantity. It also found that the stock register was maintained by the assessee giving complete quantity details; including month-wise details of raw materials, finished goods and semifinished goods. 9.1 Again, the Court cannot be oblivious of the fact that the assessee had been subjected to statutory audit under the Companies Act, 1956 and also tax audit under the Income-tax Act. No errors were found at any stage in the....

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.... the Tribunal. 10. As a parting note, it needs to be mentioned that the Tribunal also made an extensive exercise of calling for the financial ratios of seven years and of the current year under appeal and also held empathetically that after giving effect to the additions made by the Assessing Officer, the financial statement would get completely distorted; if such inclusion/ addition as made by the Assessing Officer is allowed to continue." 5. Similarly, another identical issue had come up before this Court and this Court vide judgement and order dated 19.11.2014 rendered in Tax Appeal No. 198 of 2003 in the case of CIT vs. Sharp Springs & Stapples Co. (P) Ltd observed as under:           "....