TaxTMI 
TaxTMI 
2016 (9) TMI 381
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...., 1961 (hereinafter referred to as "the Act") dated 31.12.2007 of the ITO, Ward 3(1), Indore, (hereinafter referred to as "the A.O."). The assessee has also filed cross objection. 2. The grounds of appeal taken by the revenue are as under :- "On the facts and in the circumstances of the case, the learned CIT(A) has erred in - 1. Deleting the addition of Rs. 8,99,590/- on account of undervalued closing stock. That on the facts & circumstances of the case, the difference in the purchase ledger and the closing stock was not explained properly and needed to be added. 2. Deleting the addition of Rs. 4,64,436/- on account of unaccounted sale by simply accepting the plea of the assessee of typographical error. 3. Deleting the additi....
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....assessee has shown the closing stock of hatching egg at Rs. 35,98,223/-. The Assessing Officer also observed that there was no sale of hatching egg as per the trading account. Therefore, the assessee was asked to explain the same but no satisfactory reply was furnished. According to the Assessing Officer, there is a normal process for hatching egg which requires 21 days to convert broiler to chicks. Therefore, the Assessing Officer made the addition of Rs. 8,99,590/- being the difference of purchases made on 30.3.2005 and 31.3.2005 (Rs.44,97,813 (-) Rs. 35,98,223) and closing stock disclosed by the assessee, towards undervaluation of closing stock. 5. Aggrieved with this order of the Assessing Officer, the assessee filed appeal before th....
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....Supreme Court had clearly laid down that it is the fundamental principle of accountancy that the figure of the closing stock of the earlier year has to form the opening stock of the next accounting year. 8. We have considered the facts of the case in the light of the submissions of the parties. It is seen from the bills dated 30.3.2005 and 31.3.2005 that these contain purchases of hatching egg for the period from Ist March to 31st March and the eggs hatched upto 10th March are converted into broiler chicks which were already sold. Therefore, there remains the closing stock of Rs. 35,98,223/- as shown by the assessee in its audited books of accounts. Accordingly, we find the findings of the learned CIT(A) in order. Therefore, this ground ....
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....aes from M/s Singh Hatcheries 67,88,282 6,47,291 The learned CIT(A) noted that the claim of the assessee was duly supported by bills and ledger accounts and the Assessing Officer has not rebutted such evidence of entries in bills/ledger/books of accounts. Therefore, in such a case, addition made merely on typographical error whereby higher figures were shown in the audit report, the addition on account of unaccounted profit of Rs. 4,64,436/- and unaccounted purchases of Rs. 27,58,575/- cannot be sustained. 12. We have considered the facts and the rival submissions of the parties. We find that the Assessing Officer was not able to bring out any evidence that the entries in audited books of accounts were not correct. Mor....
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....w the assessee is in cross objection before us. 17. Before us, the learned counsel for the assessee submitted that the learned CIT(A) has overlooked the basic intent of the legislature behind enacting section 40A(3) and it was stated that the payments made were never debited to P&L account and the Assessing Officer has not doubted the genuineness of the transaction. 18. On the other hand, the learned DR relied upon the orders of the authorities below. 19. We have considered the rival submissions of the parties and noted that the payments were made in excess of Rs. 20,000/-. Therefore, we find no infirmity in the orders of the authorities below. Accordingly, this ground of cross objection is dismissed. 20. Ground no. 2 relates to....