TMI Blog2014 (4) TMI 469X X X X Extracts X X X X X X X X Extracts X X X X ..... be restricted by allowing margin of 26.88% from value of excess stock inventorised at MRP during the survey operation – Decided against Revenue. - ITA No. 54/DEL/ 2010 - - - Dated:- 25-10-2013 - Shri U. B. S. Bedi And Shri B. C. Meena,JJ. For the Petitioner : Shri Ved Jain, CA For the Respondent : Shri Vivek Kumar, DR ORDER Per B. C. Meena, Accountant Member : This appeal filed by the revenue emanates from the order of the CIT (Appeals)-XXVI, New Delhi dated 14.01.2009. 2. The assessee is engaged in the business of retail trade of watches and clocks. A survey u/s 133A was conducted on 29.11.2005 at the business premises of the assessee. The assessee is a partnership firm having three partners. The return of incom ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... so acknowledged that during the current year, the G.P. rate shown by the assessee was 14.34%, which was included in the valuation of closing stock taken by the survey party. Therefore, ld AO has worked out the excess stock, after allowing deduction for G.P. of 14%, at Rs.45,02,940/-. However, the appellant had disclosed the unexplained stock at Rs.27,49,000/-, after adjusting the margin of profit @ 27%, which included the G.P. ratio of 14% and VAT of 12.5%. The difference between the two i.e. Rs.17,53,940/- was added by the ld. AO towards the under valuation of closing stock. Before me, the ld. appellant counsel argued that the ld. AO had taken no cognizance of submission made by the appellant that the margin of 27%, as allowed by the surve ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... However, I do not find merit in the submission made by the appellant that the value of the stock should also be taken to account for the discount to be given by the appellant, since discount is generally given on a case to case basis and is discretionary, therefore, one cannot value the stock by assuming that discounts will be given, which is a contingent liability. In view of this, I direct the ld AO to reduce the addition on account valuation of stock to be restricted by allowing margin of 26.88% from the value of excess stock found during survey, which was valued on MRP basis. 3. We have heard both the sides on this issue. We have also perused the record available. It is an undisputed fact that the inventory was made at the MRP during ..... X X X X Extracts X X X X X X X X Extracts X X X X
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