1998 (9) TMI 27

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....?" The assessee had shown the value of the stock in its books of account. The Income-tax Officer thought that the figures relating to the value of the stocks in the book could not be regarded as the correct value of the stocks as the assessee had given a declaration to the bank from which it had obtained overdraft facilities and in its declaration valued the stock at a figure higher than that in the books of the assessee. The Income-tax Officer computed the difference between the value as recorded in the books and that found in the declaration to the bank and treated the same as income from undisclosed sources. The assessee had contended that the value of the stocks as stated by him in the declaration given to the bank was inflated, that....

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.... Coimbatore Spinning and Weaving Co. Ltd. v. CIT [1974] 95 ITR 375 (Mad). Counsel for the Revenue relied on the decision in Coimbatore Spinning and Weaving Co. Ltd. v. CIT [1974] 95 ITR 375 (Mad), wherein the court observed that the alleged practice said to be followed by business houses of declaring larger stocks to the banks for the purpose of getting higher loans or overdraft facilities has neither been shown to exist nor recognised in commercial circles or by courts and even assuming that such a practice exists, the Tribunal is not expected to take judicial notice of such substandard morality on the part of the assessees so as to enable them to go back on their own sworn statements given to the banks as to the stocks held or hypothec....