2020 (2) TMI 575

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....al') partly allowing the appeal of the revenue. Following substantial questions of law have been claimed in the appeal: "(i) Whether in the facts and circumstances of the case, the orders Annexures P-1 and P-3 are legally sustainable? (ii) Whether in the facts and circumstances of the case, the Income Tax Appellate Tribunal was right in sustaining an addition of Rs. 12,89,080/- (wrongly typed as addition sustained is of Rs. 11,88,530/-) on account of discrepancy between the stocks as per books of account and as per bank records? (iii) Whether in the facts and circumstances of the case, the I.T.A.T. was right in sustaining the addition of Rs. 12,89,080/- in view of the statements given by the bank officials tha....

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.... 49,50,106/-. The assessee re-casted the trading account and showed the value of closing stock as on 28.4.1988 of Rs. 21,39,176/-. The difference was explained under three heads. The explanation with regard to Rs. 12,73,000/- was accepted by the Assessing Officer. As regards to Rs. 12,89,080/-, the assessee averred that the stock was pledged from the already hypothecated stock. For the remaining difference of Rs. 3,44,000/-, it was stated that the stock was to be received and pledged. The Assessing Officer rejected both the contentions and vide order dated 26.3.1992, apart from other additions made addition of Rs. 15,32,530/- on account of stock difference. Appeal was filed and the Commissioner of Income Tax (Appeals), Jalandhar [for short,....

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....es not enhance its case, rather the position comes to that the stand of the assessee with the bank was that hypothecated stock worth Rs. 20,44,026/- as it existed on 31.3.1988 continued till 28.4.1988. The stock position as per the D.P. Register as on 28.4.1988 is tabulated below: "i) Hypothecation A/c Rs. 20,44,026/- ii) Pledge A/c Rs. 12,73,000/- iii) Pledge A/c Rs. 12,89,080/- iv) To be pledged Rs. 3,44,000/-   Rs. 49,50,106/- The issue raised is only with regard to pledge of Rs. 12,89,080/-. The contention is that the stock was from the hypothecated stock of Rs. 20,00,000/- odd. To substantiate the said claim, no evidence was produced before the authorities. The bank was never informed that the hypo....