TaxTMI 
TaxTMI 
2023 (9) TMI 372
X X X X Extracts X X X X
X X X X Extracts X X X X
....to be quashed. 2. That the Ld. CIT (A) is not justified in concurring with the impugned addition of Rs. 9,71,439/- on account of alleged difference in opening stock by applying GP rate of 17.63% of the alleged difference which is illegal, arbitrary, against the facts and contentions and thus bad in law. 3. That without prejudice to above, the appellant also disputes the quantum of addition as highly excessive. 4. That the appellant craves leave to add, amend or delete any of the grounds of appeal on or before the disposal of the present appeal. 2. Briefly the facts of the case are that the assessee filed his return of income declaring total income of Rs. 3,03,670/- which was selected for scrutiny and thereafter....
X X X X Extracts X X X X
X X X X Extracts X X X X
....efore the AO. 3. The reply so filed by the assessee was considered but not found acceptable to the AO. As per the AO, on going through the details of expired stock, it reveals that it relates to Financial Year 2007-08 to 2010-11. As per the AO, as per norms of Drugs and Medicines Act, expired medicines cannot be destroyed and after any expired medicines/drugs are lying in the premises of retailer/wholesaler, same will be returned to the manufacturer. Further, the AO referred to the certificate issued by the Chandigarh Chemist Association dated 26.03.2015 wherein it has been stated that as per the nationwide Agreement to All India Organization of Chemists and Druggists and pharmaceutical companies, it has been decided that the companies w....
X X X X Extracts X X X X
X X X X Extracts X X X X
....stock and made the addition applying the gross profit rate. It was submitted that the addition is, therefore, prima facie contrary to the AO's own finding based upon the documentary evidence in the form of detailed list prepared by the assessee in respect of the expired medicine and related purchase invoices. It was, accordingly, submitted that the expired stock of medicine has been wrongly held as saleable stock and addition has been made which deserves to be deleted. 5. The reply so filed by the assessee was considered but not found acceptable to the ld. CIT(A). As per the ld. CIT(A), the assessee has not submitted any evidence of efforts made with the manufacturer from whom he purchased the medicines to ensure that they take back the ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....placed on the Hon'ble Punjab & Haryana High Court decision in case of CIT Vs Satish Estate Pvt. Ltd. (ITA 126 of 2013 dated 21.01.2014). 8. Per contra, the ld. DR has relied on the order of the lower authorities. 9. We have heard the rival contentions and purused the material available on record. The undisputed facts which are emerging from records are expired stock worth Rs 55,10,150 which were purchased during the financial year 2007-08 to 2010-11 were forming part of closing stock during the previous financial year 2010-11, however, the same were not shown as part of the opening stock in the profit/loss account prepared for the financial year 2011-12 relevant to impugned assessment year. The factum of the stock having expired h....