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2022 (5) TMI 1376 - ITAT CHANDIGARHUndisclosed investment in stock - certain loose documents found during the course of search which indicated that there were undisclosed sales - HELD THAT:- CIT(A) has given a categorical finding that the assessee was able to locate and reconcile all these entries with the regular books of account and there were only some minor differences to be found in the quantitative details of stock as per the books of account and the physical verification of stock as on the date of search. It has been mentioned by the Ld. CIT(A) that the difference was only to the tune of 0.35% of the turn over. The above finding by the Ld. CIT(A) has been recorded after a detailed verification and even during the course of arguments before us, the Ld. CIT DR could not point out any perversity in the findings of the Ld. CIT(A). Thus, the Ld. CIT(A) has returned a categorical finding that there were no undisclosed sales. In such a situation, any addition on account of undisclosed investment in stock, which is relatable to undisclosed sales, cannot be sustained. Finding no perversity in the order of the Ld. CIT(A) on this issue, we uphold his findings and dismiss the ground raised by the Department. Addition on account of difference in cost of construction as per the books of account and as per the report of the DVO - As it is an undisputed fact on record that no incriminating material or evidence was found during the course of search which could indicate that the assessee had made investment towards cost of construction outside the regular books of account. We also note that the Ld. CIT(A) had deleted the addition in this year by following the order of the Ld. CIT(A) for the immediately preceding assessment year. Since no material was found in the search and seizure operations which could justify the Assessing Officer's action in referring the matter to the DVO for his opinion on valuation of the said properties, then the valuation arrived at by the DVO would be of no consequence. Accordingly, in view of the above cited judicial precedents as well as the factual finding recorded by the Ld. CIT(A) in assessment year 2016-17, which, in our opinion, is both sound as well as logical, we have no hesitation in upholding the same. Accordingly, the ground raised by the Department on this issue also stands dismissed.
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