TaxTMI 
TaxTMI 
2026 (7) TMI 969
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....nue has proposed the following substantial questions of law arising out of the order dated 13.06.2024 passed by the Income Tax Appellate Tribunal, "B" Bench, Ahmedabad (For short "the Tribunal") in ITA No.237/Ahd/2018 for Assessment Year 2013-14 : "(i) Whether on the facts and circumstances of the case and in law, the Hon'ble ITAT has erred in confirming the decision of learned CIT (Appeal) who had deleted the disallowance of Rs. 13,23,88,046/- made by the Assessing Officer on account of under valuation of closing stock under Section 69B of the Income Tax Act? (ii) Whether on the facts and circumstances of the case and in law, the Hon'ble ITAT has erred in confirming the decision of learned CIT (Appeals) who has deleted th....
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....allowance towards insurance expenses. 3.1. Being aggrieved the assessee preferred an appeal before the Commissioner of Income Tax (Appeals). The CIT (Appeals) allowed the appeal filed by the assessee and therefore, the Revenue preferred an appeal before the Tribunal. 3.2. With regard to the question no. (i) for deletion of additions made by the Assessing Officer on account of under valuation of closing stock, the CIT (Appeals) and the Tribunal have arrived at a concurrent finding that no additions can be made on the basis of the stock statements submitted by the assessee to the Bank to avail the financial assistance. The Tribunal upheld the order passed by the CIT (Appeals) by observing as under:- "6. We have heard the argume....
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....ock valuation. Also, no evidence was produced by the assessee of sale and purchase of raw material and finished goods. e. The difference between the book stock and the stock statement was duly reconciled, and the AO did not find any defects in the books of accounts. f. The addition for under-valuation of closing stock was made only for AY 2013-14, while in previous years no such additions were made despite similar differences. The principle of consistency demands that such an addition should not be made in isolation for one year. g. Auditor of the company has not given any adverse comments on such discrepancies." 3.3. The Tribunal has also followed and applied the decision of this Court in case of Commissioner ....
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....tatement furnished to the banking authorities. If, for the purpose of fulfilling the margin requirements of the bank purely on inflated estimate basis, when the stock statement had reflected inflated value of the stock, in wake of otherwise satisfactory explanation, both - for the purpose of value as well as quantity, we find no reason to interfere with the order of the Tribunal.". 4. The Tribunal thereafter applied the aforesaid decision to uphold the deletion of the additions made by the Assessing Officer by observing that the stock statement furnished to the Bank cannot be the sole basis for determining the closing stock value for tax purpose unless supported by any independent verified evidence. The Assessing Officer has failed to ju....