2012 (1) TMI 385

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....ition of ₹ 2,03,875/- made by Assessing Officer on account of stock short found during the course of survey. The consequential ground is in respect of charging of interest u/s. 234B and 234C of the Income Tax Act. 3. The brief facts of the case are that the assessee is engaged in the business of manufacturing machinery as per the specification of the purchaser. A survey u/s. 133A was carried out on 19-1-2006.During the course of survey physical stock found was ₹ 1,09,36,951/- whereas stock as per books was₹ 1,30,74,000/-.There was a short of stock of ₹ 21,37,049/-. A statement was recorded on 19-1-2006. The assessee in reply to question No.11 stated that at present the stock in the premises had not been accounted ti....

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....; 2,03,875/-. 4. The Ld. CIT (A) confirmed the order of the Assessing Officer. 5. The Ld. A.R. submitted that the AO has made the addition merely on the basis of statement of Shri Dharamshi B. Shah which was recorded at the time of survey at mid-night at 2 O'clock. Mr. Shah is a senior citizen of an advance age of 74 years. He was physically as well as mentally exhausted, therefore, the statement recorded under such circumstances cannot be relied upon. However, the assessee in the subsequent statement clearly stated that the survey party did not take into account a stock of pipes and round bar worth ₹ 14.5 lacs and stock wheel and gear assembly worth ₹ 7 lacs lying in the open yard. The Ld. AR submitted that the assessee maint....