AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2019 (1) TMI 1528
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....he learned Commissioner of the Income-tax (Appeals) has erred in confirming the action of the assessing officer in making addition of Rs. 1,37,571/- on account of suppressed debtors 2. On the facts and circumstances of the case as well as law on the subject, the learned Commissioner of Income-tax(Appeals) has erred in confirming the action of assessing officer in making addition of Rs. 24,58,719/- on account of suppressed consumption of yarn. 3. On the facts and circumstances of the case as well as law on the subject, the learned Commissioner of Income-tax(Appeals) has also erred in rejecting the alternative contention of the assessee that even if it is presumed without admission that the action of the AO was correct, then also he oug....
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....ee to prove which account is correct to the satisfaction of the AO by corroborating the same with independently verifiable evidences such as bank accounts. Therefore, the explanation of the assessee was not found acceptable, accordingly this addition was confirmed. 6. Being aggrieved, the assessee has filed this appeal before us. The ld. Counsel for the assessee reiterated the submissions made before the Lower Authorities whereas on the other hand the ld. Sr. DR submitted that the assessee is not able reconcile the debtors list given to the bank and as reflected in audited accounts with corroborative evidences. Therefore, Lower Authorities are justified in making such addition. 7. We have heard the rival submissions and perused the materi....
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....suppressed sales, there is no logic in making addition of suppressed consumption of yarn in the reason that the sale price included in the cost of suppressed consumption of yarn and therefore this resulted in double addition of the same amount. It was further submitted that the assessee was engaged in the business of manufacturing artificial silk cloth and had taken Over Draft (OD) facility from the bank, wherein he was required to submit monthly stock statement and outstanding debtors to determine the monthly drawing power (DP) of the assessee. The data submitted to the bank was mainly for margin requirement and calculation of drawing power limit. In order to acquire more credit facility from the bank i. e. Drawing Power, the accountant of....
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....CIT(A) was of the view that addition cannot be made on both the amounts. The addition, therefore, can be made in respect of excess consumption or in excess sale. The excess sale of Grey Cloth less than the excess consumption of yarn, which means part of the excess Grey Cloth manufactured is lying in excess. Hence, the addition of only the excess consumption of yarn is justified, accordingly the CIT(A) upheld the addition of Rs. 24,58,719/- being excess consumption yarn production. 11. Being aggrieved, the assessee has filed this appeal before us. The ld. Counsel reiterated the same facts as taken before the Lower Authorities. It was submitted that the monthly stock statement was submitted to the bank on estimated basis mainly for obtaining....
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....tock as per books of accounts and that shown in the statement given to bank allegedly to obtain higher credit facilities, Tribunal had accepted explanation given by assessee and in that context had stated that when books of accounts or accounting system had been found to be genuine supported by vouchers, etc. , addition was not justified. Tribunals finding need not call for any interference, therefore, the deletion of addition was justified. In another case of CIT vs. Veerdip Rollers (P) Ltd. 323 ITR 341, the Hon'ble Gujarat High Court has held that addition on account of difference in the value of inflated closing stock furnished to the bank and as per the books of accounts furnished to Income Tax Authorities, addition u/s. 69B could n....