TaxTMI 
TaxTMI 
2022 (2) TMI 1037
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....g to the assessment years 2005-06 and 2008-09. 2.By order dated 21.04.2014, this court admitted the present appeals on the following substantial question of law: "Whether on the facts and in the circumstances of the case, the Tribunal is right in holding that the burden of proving excess stock is on the revenue when the assessee himself has admitted the availability of excess stock and thereby deleting the addition of investment in unexplained stock." 3.The brief facts of the case are that the assessee is a dealer in sanitary wares. For the sake of higher loan limit, they were in the habit of furnishing inflated stock. On 09.01.2001, a search under section 132 of the Income-tax Act, 1961 was conducted in the business premises of the ass....
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....in the Tribunal had remanded the case back to the Assessing Officer. However, in the present case, the appeal has been allowed and, therefore, no uniformity has been maintained. 9. Though the above plea has been made by the Department, this Court is not inclined to entertain this appeal on the question of law raised at this point of time in view of the subsequent decision of this Court, which is also on the same issue, rendered in the case of Commissioner of Income Tax - Vs - Smt. Sakuntala Devi Khetan (2013 (352) ITR 484 (Mad)), wherein it has been clearly held that the Assessing Officer has to adopt the figures and turnover finally assessed by the sales tax authorities. Similar issue was also considered in the case of CIT - Vs - Anandha....
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.... CIT (287 ITR 547), wherein, it has been held that cases are to be decided by the Court on legal principles and not on one's own moral views. The Tribunal has also relied upon a decision reported in 26 ITR 159 (Pandit Bros. vs. CIT), wherein, it was held that the fact that profit appeared too low or that no stock register was maintained would not be sufficient material to reject the books of account; these would only be material for provoking further enquiry; the Income Tax Officer must discover other materials and evidence to come to such conclusion. 5.2. When the books of account is good enough for provoking further enquiry and not liable to be rejected on moral views, is there any other way by which the authenticity of the books of....
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....rove that the stock statement submitted to the Sales Tax authorities was erroneous. There was no proof available for revenue to show that such statement to Sales Tax Authorities was wrong. Under such circumstances, the assessee contends that the inflated reporting of stock to the Bank should not be accepted, since the inflated statement was for the purpose of obtaining more cash credit facility. 5.5. Which out of the two authorities, whether the Bank Authorities or the Sales Tax Authorities would have been more interested in ascertaining the actual/exact stock maintained by the assessee. The Bank authorities are interested only to the extent of having the stock as security for the purpose of realizing the loan. On the other hand, the Sale....