TaxTMI 
TaxTMI 
2022 (11) TMI 525
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.... of appeal, out of which peripheral arguments are being taken in Grounds No. 2 & 3, which do not call for recording any specific finding separately. 3. The substantial grievance of the assessee has been raised in Ground No. 1, wherein it is pleaded that the ld. CIT(Appeals) has erred in confirming the addition of Rs.44,06,108/- on account of alleged difference in the stock found during the course of survey. 3. Brief facts of the case are that the assessee has filed its return of income on 29.09.2013 disclosing total income of Rs.85,22,230/-. The assessee at the relevant time was engaged in the business of retailer of H/L Cotton & Art Silk, hosiery & readymade garments under the name & style of M/s. Priya Gopal Bishoyi Grandson. A surv....
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....l physical value of stock as per MRP/ selling price Less: Profit element on such stock @17% Value of the stock inventory arrived at cost price By surve team 52815246 8978592 43836655 Vide assessee's submission 52815246 1875185 50940061 8659810 42280251 Further on 04.03.2016, the assessee filed rectified casting mistakes of Rs. 21,14,900/- and accordingly the value of physical closing stock arrived at Rs.4,25,28,2 55/ - as computed be low: - Physical value of stock as per MRP/ selling price Less: Casting mistake made in totalling of sheets Actual physical value of stock as per MRP/selling price Less: Profit element on such stock @17 % Value of stock inventory arr....
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.... but could not be accepted as certain points are not satisfactory explained:- (a) It was not known whether final accounts at the end of the year were made as per the stock of Tally ERP software or Oriel POS software as both the softwares were being used. If survey operation would not have carried out, it would have been not known that there were two systems of stock inventory were being used. The assessee would have made final accounts at the end of the year as per the stock of Tally ERP software but when the survey team pointed out about two different accounts of stock, the assessee has, then only claimed that they were using Oriel POS. software for valuation of stock to cover up the discrepancies of stock. (b) As per the....
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.... There is no mention in the audit report that valuation of closing stock is done by Oriel POS software. The assessee has stated that they have maintained the inventory' valuation software ORIEL POS since 2010 but in the Audit report of F.Y.2010-11 also, it was not mentioned that the valuation of closing stock is done by Oriel POS software. Under these facts and circumstances, the claim of the assessee is rejected and the excess stock of Rs.44,06,108/- as discussed in para 2(b) above is added to the total income of the assessee as undisclosed stock. Penalty proceedings u/s 271(l)(c) are being initiated separately for furnishing inaccurate particulars /concealment of income. [Addition: Rs.44,06,108/-]". 5. The appeal to the....
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....08,594/- Assessment Tear: 2012-2013 TALLY ERP-9 Difference in valuation As per Audited Trading Account (ORIEL POS) Closing stock 2,33,48,269.31 1,06,39,423/- 3,39,87,692.00 Gross Profit 1,95,46,535.81 1,06,39,423/- 3,01,85,958.50 Income Tax paid 27,61,487/- 7. Ld. Counsel for the assessee took us through page no. 36 of the paper book, where Trading and Profit & Loss Account for the year ended on 31st March, 2012 is available. He submitted that in these audited accounts, the stock as on 31.03.2012 has been worked out at Rs.3,39,87,692/- and this very figure is available in the table extracted supra. In other words, for the purpose of income tax, assessee has been acco....
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....ysical stock on the basis of ORIEL Software. It is also observed that ld. Assessing Officer failed to appreciate the explanation of the assessee in right perspective. The assessee with the help of audited accounts explained to the ld. Assessing Officer that taxable income is being computed on the basis of ORIEL POS Software details. During the course of hearing, this fact has been demonstrated before us from the audited accounts. For Financial Year 2011-12, i.e. Assessment Year 2012-13, the assessee has shown Closing Stock at Rs.3,39,87,692/-, whereas as per Tally Software, this Closing Stock was of Rs.2,33,48,269/-. In the Audited Accounts for A.Y. 2012-13, which is prior to the date of survey, Closing Stock has been shown equivalent to th....