2017 (4) TMI 166

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....assessment year 2010-11, the assessee filed their return of income and assessment was completed by the Assessing Officer making the addition of Rs. 36,96,697 on account of undisclosed stocks. 2. Challenging the same the assessee preferred an appeal before the learned Commissioner of Income-tax (Appeals), Bhagalpur in Appeal No.52/A-1/13-14/2010-11 and the learned Commissioner of Income-tax (Appeals) by way of impugned order dated January 19, 2016 allowed the appeal in part and reduced the addition to Rs. 25,98,065. Such an amount of Rs. 25,98,065 according to the assessee is on account of three counts. Firstly, stock worth Rs. 22,77,420 belongs to the contractors but kept in the premises of the assessee, sprinkler worth Rs. 3,50,000 belo....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ative that all the details of the contractors are furnished, though not on the date of the survey the bills and vouchers etc. could be produced before the authorities, but subsequently all such material was produced. But the authorities below failed to appreciate the same on suspicion that generally a trader has to purchase the goods either from the manufacturer or distributor but not from a third person like the assessee and it created some suspicion in the mind of the Assessing Officer. In so far as the stock worth of Rs. 3,50,000 is concerned, the necessary confirmation by way of bills issued by the manufacturer along with the transport receipts and payments details were furnished to the authorities. 5. By way of paper book the assess....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... prospects of the assessee. Further in this process the manufacturer need not run the risk of any of bad debts or non-payments of the sale consideration. There is nothing improbable in this proposition put forth before us and merely because some suspicion occurred to the mind of the Assessing Officer such suspicion cannot prevail over broad probabilities. 6. In so far as the statements of the contractors are concerned, they are four out of six confirmed the version of the assessee and one Mr. Anil Kumar confirmed the same by way of letter dated September 19, 2010 recorded by the Assessing Officer. It could be found from the statement that is drawn by the Assessing Officer on page 68 of the assessment order the contractors made payments t....