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2017 (9) TMI 1596 - AT - Income TaxExcess cash found during the course of survey - excess stock found during the course of survey - Held that:- In the present case, the assessee had surrendered ₹ 58,00,000 on account of shortage of stock which was claimed to have been sold outside the books of account and the value the inventory relating to work-in-progress weighing 43,803 kg. worked out at ₹ 49,06,000. In the present case, the total value of the sales outside the books of account and the work-in-progress found during the course of search come to ₹ 1,07,06,000 (Rs. 49,06,000 + 58,00,000) which the assessee had already disclosed in its profit and loss accounts from April 1, 2008 to March 16, 2009 i.e., date on which the survey was conducted. In that view of the matter, we arc of the view that no addition was required to be made except the surrendered amount which has already been disclosed by the assessee at ₹ 58,00,000. Therefore, the addition of ₹ 7,18,000 on account of cash found during the course of survey and of ₹ 74,82,000 on account of alleged excess stock was not justified because there was no excess stock rather the stock was short. Accordingly, both those additions are deleted. Appeal of the assessee is allowed.
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