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2007 (5) TMI 622 - RAJASTHAN HIGH COURTExcess valuation of stock - discrepancy between stock statements filed in Bank and stock shown in books of accounts - Whether the Tribunal was justified in upholding the order of the CIT(A) who deleted the additions? - HELD THAT:- There is no finding on the fundamental aspect of the matter if there was any discrepancy in the quantity of the stock as stated to the bank and as stated in books. The learned Assessing Officer has merely proceeded on the discrepancy in the two figures in valuation of the closing stock, debtors and advances as per the books of account at ₹ 20,13,748 and as declared to the bank at ₹ 23,37,248; and has directly proceeded to make addition of the difference amount of ₹ 3,23,500. Mere variation in the valuation of assets as declared to the bank and as stated in the books of account was not conclusive; and the amount of difference itself could not have been taken up for addition without further requisite inquiry about the true stock position and value of the assets. The learned Assessing Officer preferred to rely merely upon the fact that for such discrepancy addition was made in the earlier year; and on that basis alone is founded the addition for the year in question. It has been noted by the appellate authorities that such addition made for the earlier assessment year 1981-82 has not been countenanced in appeal; and the Tribunal has pointed out that under the similar facts and circumstances, reference application moved by the revenue for the assessment year 1981-82 was rejected. Irrespective of that, we are clearly of opinion that for the year in question, i.e., assessment year 1982-83, the Assessing Officer could not have made additions merely with reference to the variation in two valuations without coming to a conclusion that there was actual variance in the quantity of stock; and without finding as to when such discrepancy, if at all, occurred. The appellate authorities cannot be said to have erred in deleting such addition made without requisite inquiry and without essential finding about actual variation in the stock. We are satisfied with the correctness of the order passed by the Tribunal and find no ground to call for a reference in the present case. Accordingly, this reference application is rejected.
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