TaxTMI 
TaxTMI 
2019 (11) TMI 197
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.... alleged short stock of Rs. 34 lacs (instead of Rs. 32 lacs)." 2. Briefly stated, the facts of the case are that the assessee is in business of trading of pharmaceutical items both on wholesale as well as retail basis. The assessee filed her return of income on 28.9.2012 declaring total income at Rs. 8,70,320/- and the Assessing officer completed the assessment u/s 143(3) r.w.s. 153B(b) of the Act vide order dated 13.3.2014 at a total income of Rs. 11,67,580/-. 3. During the course of survey u/s 133A conducted at the business premises of the assessee on 8.6.2011, stock was physically counted and valued by the survey team at Rs. 1,10,87,117/-, however, the survey team did not work out the stock as per books as on the date of survey. Du....
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....the real cost price and the difference ranges from 10% to 70% depending on item to item. The calculation/valuation of stock was made in letter dated 17.10.2013 on the basis of 25% difference and if this difference is taken at 15% there would be only a nominal difference in the stock. The A/R thus requested that no addition is justified on this issue. 5. The claim of the A/R was considered by the Assessing officer but not found convincing in its entirety. As per Assessing officer, it is correct that valuation was got done on the basis of MRP and also various items were counted on the basis of estimation of items rack wise, but all these defects must have been pointed out by the assessee at the time of survey itself. More over, the A/R of ....
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.... the basis of quantity of each item. (b) Rate mentioned in the list prepared by survey team is MRP of item. This fact is mentioned on the list itself. (c) Against many items, the rate is mentioned but the value has not been calculated. (d) There is mistake in totaling of the pages of inventory prepared by department. Inspite of these shortcomings and incorrect stock taking, if the inventory list prepared by the survey team is valued (on the basis of MRP mentioned in the list) and totaled correctly, the total value of inventory comes to Rs. 2,23,67,214/-. Item wise calculation of value and page wise total made by us is enclosed. As mentioned above the survey team has mentioned MRP of the ....
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....otal sales are made through bills. Due to large number of items it is not possible to maintain inventory but otherwise there is proper control on the receipt and issue of medicines. The value of stock found in survey is more or less verifiable with that as per books of accounts after considering the defect in valuation as stated above, Thus stock found in survey is fully explained." 8. Per contra, the ld. DR relied on the findings of the lower authorities. It was submitted that the assessee has been provided adequate opportunity by the Assessing officer to explain the difference in stock and where as per the assessee's own working, the short stock of Rs. 34 lacs has been determined by the Assessing officer and on which ....