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2013 (5) TMI 578 - ITAT DELHIAddition on account of negative stock - CIT(A) deleted the addition - Held that:- Assessee has maintained proper books of accounts with no defect pointed out with the quantitative details of stock were duly certified by the Auditors. AO has not been able to make the case of inflated purchases or unaccounted sales, purchase, sale gross profit & net profits amount remained the same. The quantitative details as submitted duly explained that there was no negative stock in any of the month. Thus AO has erred in his approach and the figure of negative stock arrived is totally erroneous. In favour of assessee. Interest paid on the loans and advances disallowed - Held that:- As from the figures of the opening and closing capital of the assessee it is evident that assessee has sufficient own funds to cover the interest free loans / advances of Rs. 42,52,300/-. As AO has not been able to dispute the assessee's submission that assessee had adequate own funds out of which interest free loans and advances no disallowance is called for. Similarly, again on similar facts in A.Y. 2007-08 CIT(A) deleted the similar additions by the AO and the decision of CIT(A) was not challenged by the Department in higher forums. In favour of assessee.
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