2024 (1) TMI 361

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....ax Act, 1961 (for short "the Act") the Revenue has proposed the following substantial questions of law arising out of the order dated 26.09.2022 passed by the Income Tax Appellate Tribunal, Surat (for short "the Tribunal") in ITA No.3053/ AHD/2016 for A.Y. 2011-12. "A. Whether, on the facts and circumstances of the case and in law, the Tribunal was right in restricting the disallowance to the extent 25% (25% of Rs. 2,22,74,370/-) on account of undervaluation of closing stock, by ignoring the detailed findings made by the AO and Ld. CIT(A)? B. Whether on the facts and circumstances of the case and in law, the Tribunal was right in restricting the disallowance, inspite of the fact that Hon'ble Tribunal itself has observe....

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....feature that neither the expired chemical nor the damaged goods of the assessee can secure the price in the market and most of the products of the assessee may prove hazardous to the environment. It was also found by the Tribunal that if the goods in the damaged position are not disposed of in a controlled manner then it would prove hazardous to the environment. The Tribunal therefore, in the facts of the case to avoid the possibility of revenue leakage restricted the disallowance to the extent of 25% of Rs. 2,22,74,370/- on account of the undervaluation of the closing stock. 7. Learned advocate Mr. Raval appearing for the appellant-Revenue submitted that the Tribunal has passed the impugned order restricting the disallowance to 25% with....

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....) Quantity (Please Refer Page No. 716 to 759). 3.3 However, the Assessing Officer has not accepted the contention of the Appellant and even reply given vide letter dated 21.03.2014 has not at all considered and has proceeded to reject the contention on presumption and assumption not bringing out any evidences contrary to the facts of the case and has revised the valuation in respect of all the items and has made addition of Rs. 2,22,74,370/-. Inspite of the fact that the Appellant has submitted the stock statements of various C & F locations, whose stock were physically taken and verified by the firms of Chartered Accountants of those locations, wherein they certified in the statement itself, the stocks as expired damage/leakage or....