2014 (11) TMI 1130

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....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. Gaurav Dudeja, Sr. Departmental Representative, relied upon the ....

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....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 stock was hypothetical and not pledge - Bank official had not verified  the said statement showing the inflated stoc....

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....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 on 31.3.2007 are supported by vouchers and the Assessing Officer had not pointed out any suppression of purchases or sales. In view of the to....