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2012 (2) TMI 303 - ITAT, CHANDIGARHAdditions on account of undervaluation of Stocks - Held That:- Sales of 40,000 pieces of HUB PH/Type, sales have been reflected in stock register, assessee has not been able to fully substantiate his argument and, therefore, taking into consideration the totality of the circumstances, the addition of Rs.7,60,000/- (40000 pieces x Rs.19/- ) is confirmed, out of the addition of Rs.8,17,050/- and the relief allowed is Rs.57050/- is justified. Dis-allowances to the tune of 7,53,949 as CIT(A) has not given any categorical finding - Held That:- Assessee had been following consistent method of accounting for valuing at cost or market value, whichever is less, and also most of the items in the closing stock are out of the opening stock and, whatever, items had been purchased, they have been sold and thus, the AO was not justified to adopting the rates which have been mentioned in the stock register in an adhoc manner. Thus, the assessee is entitled to relief of a sum of Rs.7,53,949/- .” AO disallowed interest as advances were given without any business expediency - Held That:- In view of S.A.Builders(Supreme Court), held that the advances were made for commercial use, hence impugned disallowance was deleted.
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