TMI Blog2010 (4) TMI 912X X X X Extracts X X X X X X X X Extracts X X X X ..... t of marble slabs by 25 per cent. 3. The learned Commissioner of Income-tax (Appeals) has also erred in directing the Assessing Officer to allow the rebate of 37.5 percent towards market price such as handling damages, sales tax and incentive to masons for arriving at the value of closing stock of marble slabs and tiles. 4. The learned Commissioner of Income-tax (Appeals) ought to have seen that the Assessing Officer in the assessment order has allowed 30 per cent. of rebate towards wastage due to cutting of edges, cracks, discount and sales tax included in the maximum retail price." The assessee has raised the following grounds in its cross objection: "1. The order of the Commissioner of Income-tax (Appeals) in so far as it is agai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ommissioner of Income-tax (Appeals) respectively by the firm was a near impossibility and hence no addition was warranted on the facts of the case. 7. The Commissioner of Income-tax (Appeals) further failed to appreciate that purchase and sales is a continuous process and hence there was no justification for any addition at all as investment unexplained. 8. In any event, the addition sustained is highly excessive arbitrary and without the authority of law. 9. The Commissioner of Income-tax (Appeals) ought to have allowed the assessee's claim for carry forward and set off of loss of Rs.1,00,681." Briefly stated, the facts of the case are that the assessee is a partnership firm constituted vide partnership deed dated March 15, 2003. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ound excess stock only of Rs. 3,61,680, which was subsequently deleted in appeal by the Assistant Commissioner of Commercial Tax and thus, there was no excess stock at all. The Assessing Officer allowed only 30 per cent. deduction from the total value of stock taken by the survey team and after adopting gross profit rate of 12.5 per cent., has arrived at the excess stock at Rs. 28,46,395 and has added the same. Against which the assessee preferred the first appeal. It was argued, before the learned Commissioner of Income-tax (Appeals), inter alia, that the survey team did not value the stock, found at the time of survey, correctly. Various other explanations which were taken before the Assessing Officer were also repeated. After considering ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he entire addition made on account of excess stock, but the survey by sales tax authorities may be different from various angles. Yet, there is a judicial dictum that whatever stock is found in survey done by the Sales Tax Department can be adopted in the income-tax proceedings also. It is also an undisputed fact that the assessee had started its business just in the previous year. After going through the grounds raised in the cross-objection as well as the grounds raised in the Revenue s appeal, we find that the learned Commissioner of Income-tax (Appeals) findings are quite justifiable and no interference is called for. The reduction on account of edges and cracks has been correctly given. The actual sale price has been considered which c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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