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2013 (11) TMI 1665 - AT - Income TaxUnexplained purchases - Held that:- It is an undisputed fact that Assessee deals in grey cloth and processed cloth and had obtained bank finance for working capital by hypothecation of the aforesaid stock. CIT(A) while deleting the addition has noted that AO has compared the value and quantity of stock of grey submitted to the bank with that of book stock but had not made comparision of processed cloth, the quantitative details of which were also submitted to the bank. He has further noted that the aggregate stock of grey cloth and processed stock for the month of June 2003 as per the books of the assessee was ₹ 91.76 lacs as against the value of stock of ₹ 93.46 lacs submitted to the bank. He has further noted that for the month of Aug to Sept 2003 the stock submitted to the bank was lower than the stock as per books which therefore suggest that stock statement submitted to the bank was incorrect. He has further noted that AO has not brought any independent evidence which can prove that Assessee has purchased grey cloth out of undisclosed sources or Assessee was in fact in possession of higher quantity of stock. Before us, the Revenue has not brought any material on record to controvert the findings of CIT(A). In view of the aforesaid facts, we find no reason to interfere with the order of CIT(A). - Decided against revenue.
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