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2012 (12) TMI 184 - ITAT AHMEDABADAddition made in respect of FDRs found at the assessee’s premises in the course of survey –question which was asked from one of the partners of the assessee at the time of survey and in reply, it was informed that the FDRs belonged to family members out of which some of them stated to be staying outside India. Since the funds of those relatives are managed by the assessee, therefore the FDRs were found in possession of the assessee - AO had not been able to conclusively prove that those FDRs were in fact the property of the firm - addition deleted – In favor of assessee Difference in the stock of tobacco – Held that:- It was explained that 3915 bags containing 1,09,620 Kgs. of tobacco belonged to one M/s.Pinak Pani Traders and that firm was yet to lift the material - Due to the absence of a confirmation from the said party, the AO had rejected the explanation - assessee has placed the correspondence with those parties and the response of the Accountant of the firm as per his statement recorded - enquiry was made in respect of the stock lying in the three go-downs belonging to the assessee-firm. It was stated that stock belonged to Ambica Trading Co. out of the total sales made. It has also been stated that goods were sold to Pinak Pani Traders and part of the bags were yet to be delivered - appellant’s claim of partial lifting of stock or partial delivery of stock was not contradicted by the AO - addition deleted – In favor of assessee Addition on account of excess tobacco dust of 68,638 KG, short kandi stock of 8905 KG and short pashari stock of 16,655 KG – Held that:- Reconciliation has been filed in respect of the shortage of stock and that reconciliation was confronted to the AO during the course of remand proceedings but that explanation was not controverted. The assessee has undisputedly maintained quantitative details of purchases and sales, as is evident from the correspondence placed on record addressed to the AO - assessee has furnished a reconciliation statement to the AO. The said reconciliation was duly considered by ld.CIT(A) and, therefore, held that the said apparent difference was duly reconciled. Since the Revenue Department has not expressed any reservation in respect of the reconciliation – addition deleted – In favor of assessee
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