TaxTMI 
TaxTMI 
TaxTMI 
2024 (2) TMI 984
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....iled submissions and explanations along with the evidences brought on record by the assessee reconciling the difference in stock found during the course of survey. 3. On the facts and circumstances of the case, the learned CIT(A) has erred both on facts and in law in confirming the addition by misinterpreting the statements of the partner of the assessee firm recorded by the survey authorities. 4. On the facts and circumstances of the case, the learned CIT(A) has erred both on facts and in law in confirming the addition ignoring the contention of the assessee that books of accounts of the assessee are duly audited and no defect has been pointed out by the learned AO at the time of survey or during the course of assessment proceedings. 5. On the facts and circumstances of the case, the learned CIT(A) has erred both on facts and in law in confirming the addition ignoring the contention of the assessee that the addition has been made by the AO without bringing any corroborative evidence on record to justify the additions made by him. 6. On the facts and circumstances of the case, the learned CIT(A) has erred both on facts and in law in confirming the addition ignoring the ....
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.... 53-56. iv. Further, a copy of ledger A/c of the assessee in the books of respective parties namely Shri Rathi Steel Supplier, Vishal Chain & Jewellery Pvt. Ltd. and Chain Shah Jewellers was also annexed to this reply. Further copy of complete bank statement evidencing receipt of payment against sale of such goods, stock ledger of different items of stock, details of actual closing stock as on 29.11.2016, inventory report prepared by survey team and a complete reconciliation of difference between the physical stock found by the survey team and the stock found in the books of the assessee were duly furnished before the AO as annexure to Reply dated 18.11.2019. v. That differential of inventory as per valuation report was solely on the basis of statement of Mr. Sanjay Malhotra and no corroborative evidence in support of such statement was brought on record by the AO. Also, Mr. Sanjay Malhotra, had clearly stated that "I am not able to explain it right now". He never admitted that the difference in stock represented undisclosed income. 7. Thereafter, the Assessing Officer issued notices u/s 133(6) dated 03.12.2019 to all the three parties namely, Shri Rathi Steel Supplier, Vishal....
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.... anomaly or defect existed in the reconciliation furnished by the assessee and the excess stock found during the course of survey was on account of undelivered goods kept at the premises of the assessee. 12. The assessee has duly submitted the following documents before the AO. No defects or discrepancies were pointed out in the documents filed by the assessee. * Copy of all the undelivered invoices dated 28.11.2016 with a copy of acknowledgement dated 01.12.2016 * Copy of ledger account of each party * Copy of bank statement evidencing payments received from each party * Copy of stock ledger in the books of the assessee * Copy of details of actual closing stock as on 29.11.2016 * Copy of inventory report as on the date of survey * Copy of Reconciliation of inventory * Copy of valuation report dated 30.11.2016 prepared during the course of survey 13. On the other hand, the ld. DR strongly relied on the order of the Assessing Officer and the order of the ld. CIT(A). 14. Heard the arguments of both the parties and perused the material available on record. 15. We have gone through the invoices of undelivered goods along with their acknowledgement, ledger of the ass....
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....2nd December 2016. 18. The assessee having given the explanation which was plausible explanation which stands verified in inquiry by the Assessing Officer, the same cannot be rejected arbitrarily by indulging into surmises. It is also relevant to point out that the assessee has produced complete books of accounts during assessment proceedings. No defects have been pointed out and the books of accounts have been accepted. Thus when the difference in physical stock found during survey and as recorded in the books is duly reconciled by the assessee and supporting evidences have also been furnished before the Assessing Officer & ld. CIT(A) in which no defect or discrepancy whatsoever has been pointed out by the Assessing Officer or ld. CIT(A), no addition is called for. Reliance is placed on the following judicial pronouncements: * Sh. Ram Pal Gupta Vs. DCIT, Central Circle, Jammu. And (Vice-Versa), 2022 (11) TMI 974 - ITAT Amritsar, Dated: - 15-11-2022 "10. We heard the rival submission considered the documents available in the record. Perusal of the above documents the assessee filed the reconciliation and the evidence related basis of valuation. The valuation of stock is based....
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....tement and find that the assessee has reasonable explained the differences in the stock with its explanation and supporting documentation. In respect of point no. D, we find that valuation of stock has to be at cost price and not selling price and rate of gross profit of 10% has rightly been reduced to arrive at the correct stock valuation and the addition so made is hereby deleted. In respect of point no. E, the ld. CIT(A) has granted relief of ? 92,082/- and sustained the addition of Rs. 6,705/- which is not pressed by the assessee. In respect of point no. F, the assessee has submitted the relevant purchase bills and affidavit of suppliers stating that the goods were dispatched and delivered to assessee prior to survey and invoices were delivered subsequently and the quantity and other particulars matches and therefore, there is no basis for such addition of Rs. 166,260/- which is hereby deleted. In respect of point no. G, the assessee has explained the reason for recording short opening stock and we find the said explanation satisfactory. In respect of point no. J and K, the assessee has reasonable explained the difference on account of product differentiation and the addition s....