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2019 (6) TMI 916 - ITAT JAIPURAddition on account of excess stock found in respect of grey fabrics, finished fabrics and yarn - non-posting of grey folding data entries in the computer - addition in respect of excess stock and found that the addition of Grey Fabrics of 10,797.20 Meters valued @ ₹ 37.60 - HELD THAT:- Substantial difference is on account of non-posting of grey folding data entries in the computer for the period 24.09.2012 to 25.09.2012, due to search going on the search premises and the difference of 10797.20 Meters and the same is explained by the appellant by the accounting entries in its books. Accordingly, he held that there is no excess stock to the extent of 10797.20 Meters. However, that still leave a miner difference of 86.10 Meters, the AO is directed to tax the same @ ₹ 37.60 amounting to ₹ 3,237.36. No infirmity in the finding so recorded by the CIT(A) in deleting the addition which relate to non-posting of grey folding data entries in the computer for the period 24.09.2012 to 25.09.2012. Accordingly, we uphold the order of the CIT(A) for confirming addition of 86.10 Mtrs. Found excess @ ₹ 37.60 resulting into upholding addition to the extent of ₹ 3,237.36. Addition made on account of finished fabrics - CIT(A) found that it was on account of calculation mistake done by the department while applying blanket rate of ₹ 100 per meter on various items of sample - HELD THAT:- After recording detailed findings, CIT(A) upheld the addition of 616.10 meters resulting into addition of ₹ 5,662.80 out of total addition of ₹ 1,13,380.90 made by the A.O.. We do not find any infirmity in the order of the ld. CIT(A) so far as the grey fabrics and finished fabrics is concerned. Addition made in respect of yarn - CIT(A) has deleted the addition to the extent of ₹ 82,82,552.60 - HELD THAT:- CIT(A) has observed that the department has taken incorrect value of yarn purchase for the month of July 2012, the said explanation of the assessee was found correct & supported with documents and substantially explain the excess stock to the extent of 47148.36 Kg. After giving effect of the correct value of yarn purchase for the month of July 2012. There is no infirmity in this part of finding of the ld. CIT(A), accordingly, we uphold action of the ld. CIT(A) to the extent of deleting the addition of ₹ 87,93,007.44 under the head yarn. Stock of yarn - HELD THAT:- Assessee has included yarn of 11182.31 KG which was actually waste and found during the course of survey. However, the department has valued it as stock of fresh yarn. Accordingly, we do not find any justification in upholding the addition of 11182.31 KG of yarn amounting to ₹ 19,64,396.40. Accordingly, we do not find any merit in the action of the CIT(A) for upholding this addition of ₹ 19,64,396.40. We direct the A.O. to delete the entire addition of ₹ 1,02,46,949.32 made under the head of Yarn.
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