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2015 (9) TMI 25 - JHARKHAND HIGH COURTUndisclosed stock of gold & diamond jewellery - Whether ITAT was right in deleting the addition without considering that the assessee has not disclosed the aforesaid addition before the Settlement Commission as provided under section 245D(4) - ITAT deleted the addition added as undisclosed income for A.Y. 200203 on the strength of the seized document marked - Held that:- No error has been committed by the Commissioner of Income Tax (Appeals) nor by the ITAT in deleting both the aforesaid additions. Firstly on the ground that voluntarily disclosure made by Mr. P.P. Arya includes the aforesaid amount which is at ₹ 22,84,923/- and so far as addition of ₹ 41,51,301/- is concerned, it is submitted that the basic principles of accountancy have been properly appreciated by the Commissioner of Income Tax (Appeals) and the ITAT. There is no variance of stocks. Nonetheless, the closing stock was made as per cost price by the assessee and the said plea cannot be altered by the department. Since the assessee is valuing the closing stock on the basis of the cost price or market price whichever is lower and therefore, assessee has valued his stock at cost price which is also supported by the auditors report and therefore, this addition of ₹ 41,51,301/- has been rightly dealt by both the authorities under the Income Tax Act namely, Commissioner of Income Tax (Appeals) and ITAT. The documents which are exhibited A/JJ/6 contains the balance sheet, trading and profit and loss account, inventory of stock and valuation of stock for the period 01.04.2001 to 25.09.2001 showing net profit of the assessee at ₹ 41,81,301/- In fact, this is an error committed by Assessing Officer without appreciating the fact that what is the basic principles of valuation of the closing stock. No illegality has been committed by both the authorities below and hence, this appeal may not be entertained by this Court. - Decided against revenue.
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