2014 (11) TMI 1130

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....(A) has erred in law on facts in deleting the addition of Rs. 1,00,06,656/- made by the AO on account of excess value of stock? 2. Whether on the facts and in the circumstances of the case, the Ld. CIT(A) has erred in law on facts in not appreciating the facts that as per certificate given by the assessee to the bank, the stock was valued in the same manner as adopted for company's audited accounts? 3. The appellant craves leave to add, alter or amend any / all of the grounds of appeal before or during the course of the hearing of the appeal." 2. The facts narrated by the Revenue are not in dispute by both the parties, therefore, not repeating the same here for the sake of convenience. 3. At the time of hearing, Sh. ....

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....- Rs. 1,77,17,888). Reliance is placed on the following judgements:- i) CIT vs. Laxmi Engg. Industries : (2009) 308 279 (RAJ). ii) CIT vs. Udaipur Chemicals & Fertilizers (P) Ltd. : 166 Taxman 266, (2007) 211 CTR 191 (Raj.). iii) CIT vs. Das Industires (2008) 303 ITR 199 (All) iv) ACIT vs. Jyoti Rollers Pvt. Ltd. (2009) 125 TTJ 810 v) CIT vs. Veerdip Rollers Pvt. Ltd. : (2010) 323 ITR 341 (Guj.) Unexplained investment - Addition on account of difference in the value of closing stock furnished to the bank and the value of the stock found in the books of accounts furnished to the IT authorities - Inflated stock found in the books of accounts furnished to the IT authorities - Inflated st....

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.... were produced for the verification and the same were found to be in order. The Assessing Officer while making the impugned addition of Rs. 1,00,06,656/- to the income of the appellant has not rejected the books of accounts. As such, the ratio of the decision relied by the Assessing Officer is not applicable on the facts of this case. The judicial precedents as discussed above make it clear that the addition on account of difference in stock can be made only on the basis of adequate material, but not arbitrarily. Admittedly, there was a difference between the value of stock declared to the bank and the Assessing Officer. There was no dispute that the appellant was maintaining books of accounts on day to day basis. The purchases and sales as....