2026 (2) TMI 713

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....g aside of order dated 09.02.2009 passed by Income Tax Appellate Tribunal, Chandigarh (for short 'ITAT'). 2. The appeal was admitted vide order dated 17.03.2010 for adjudication of following substantial questions of law:- i. Whether in the facts and circumstances of the case, the addition made in non-compliance with the order of this Court dated 06.08.2004 is legally sustainable in the eyes of the law? ii. Whether in the facts and circumstances of the case, the impugned orders are liable to be set aside as the relevant record had been weeded out by the bank and the main issue of the stock statement being signed or not by any of the partner of the firm remained unanswered? 3. This is second round of litigation. The ap....

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....me up for consideration before ITAT which further remanded the matter to Assessing Authority. The Assessing Authority vide order dated 27.12.2006 again concluded that stock as declared in statement filed before Bank should be considered. The findings recorded by Assessing Authority read as :- "During the assessment proceedings as desired by Hon'ble High Court and ITAT, Sh. Anmol Sharma, Deputy Manager, State Bank of India, Civil Lines, Ludhiana was cross examined by Sh. Subhash Sharma, Ld. Counsel of the assessee. As the matter pertains to old period he was not able to say anything in matter of the account of the assessee. He stated that the record, which is more than 10 years old, is weeded out. However he wa....

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....ning stock was shown as per the earlier stock statement filed with the bank. In the second stock statement relating to packing credit type pledging, it may again be seen that the opening stock of woollen yarn has been shown at 7467 kgs and thereafter the receipt has been added and issue has been subtracted resulting in the closing stock at 5257 kgs. It is thus clear that in both the statements, which have been challenged to be not reliable, complete details regarding opening and closing stock as well as receipt and issue of the stocks have been given. It would therefore be not appropriate to hold that the godown keeper Sh. Ramesh Chander on his own prepared these two statements and gave his imaginary/incorrect figures" 5. The appellant p....

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....tion of stock. He confirmed that stock was kept in lock and key with Bank's Godown Keeper and it was duty of Godown Keeper to prepare stock statement and the same was confirmed by firm by putting their signature on such statement. The statement was not entered if any partner of the firm did not sign it. The document was useful as it was the basis of drawing-power of the assessee. 10. The appellant neither before authorities nor before this Court has pleaded that they did not avail over draft facility as per stock statement relied upon by Income Tax Department. It means the appellant availed over draft facility as per stock statement. The said statement may or may not be signed because of ruse on the part of appellant or mistake of the Ba....