2023 (3) TMI 1141

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.... unaccounted sales by the appellate authority is baseless and on surmise since appellant actual audited G.P. rate is lower. ii. For that ld. appellate authority failed to appreciate the fact that the said higher estimation of GP by AO has been done without rejecting the books of accounts. Hence, it is grossly incorrect. iii. For that confirmation of addition on excess stock is unjust and bad in law since the said amount is the business income of the appellant. Hence only the audited G.P. rate is applicable on said amount. iv. For that since the excess stock found on survey is the part and parcel of the identical goods manufactured by the appellant and since it is separately identifiable, therefore such excess stock is the business ....

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.... appeal before the ld. CIT(A) but the appeal of the assessee was partly allowed. The ld. CIT(A) in his order observed that the addition made by the ld. AO on account of excess stock of Rs. 53,94,245/- has been justified under the provisions of law and sustained the addition of Rs. 53,94,245/- in the hands of assessee. He further sustained the addition of Rs. 4,30,000/- on account of non deduction of TDS on freight charges. 4. Dissatisfied with the above order, assessee preferred an appeal before the Tribunal against confirmation of addition of Rs. 53,94,245/- and Rs. 4,30,000/- respectively by the ld. CIT(A). 5. At the time of hearing, ld. AR submitted before us that the ld. CIT(A) in his order accepted the fact that alleged excess stock ....

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....of dispute between the parties sustained the addition on account of undisclosed stock of Rs. 6,47,310/- i.e. 12% of undisclosed stock of Rs. 53,94,245/- and partly allowed ground no. 1 & 2 raised by the assessee. Therefore, the impugned addition made by the ld. CIT(A) is hereby set aside in terms of our observation made above. 7. Ground no. 6 raised by the assessee regarding the confirmation of TDS addition on freight charges as the assessee being aggrieved by the order of ld. CIT(A) as carried the matter before us. 8. On this issue, the ld. AR submitted that as the payments were made towards hiring charges to the parties by obtaining PAN details of the transporters. He further contended that in terms of provisions of section 194C(6) stat....