TMI Blog1996 (6) TMI 102X X X X Extracts X X X X X X X X Extracts X X X X ..... 3-1988 to the bank as under : Rs. Spindle forging 2200 pc. @ Rs. 40 88,000 1000 pc @ Rs. 30 30,000 M.S. Round 10.5 ton @ 6,700 per ton 70,350 M.S. Square 3 ton @ Rs. 7,000 per ton 21,000 E.N. 8 Billets 9 ton @ Rs. 6,300 per ton 56,700 ----------------- 2,66,050 ----------------- In the books of account, the assessee furnished the details of goods in closing stock on the same date as under : List of Closing Stock as on 31-3-1988 Name of items Qty. Rate Value Rs. Finished spindle forgings 2610 Nos. @ Rs. 38 p. pc. 99,180 Unfinished spindle forgings 2165 Nos. @ Rs. 36 p. pc. 77,940 M.S. Round 25435 kgs. @ Rs. 7,175 p. pc. 1,82,496 Billets EN 8 3635 kgs. @ Rs. 6,267 p. pc. 22,790 Consumable store Hardware go ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... items, mentioned above. 5. The assessee impugned the addition in appeal before the DCIT(A) and reiterated its submissions. It was further argued that even if there was a difference in the bank statement and stock inventory, no addition could be made. The assessee relied on certain decisions quoted by the DCIT(A) at page 3 of the order. The ld. DCIT(A) was of the view that case before him was covered by decision of ITAT in the case of ITO v. Lavkush Hosy. Facy. in 37 CRR 71. Applying the ratio of the above decision, ld. DCIT(A) deleted the addition. The revenue has come up in appeal. 6. Before me the ld. D.R. argued that none of the facts discussed by the Assessing Officer in the assessment order has been considered by the DCIT(A). The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... acting upon such admission. The general argument that businessman furnishes motivated and incorrect statement to the bank to obtain higher over-draft cannot be accepted as Hon'ble Madras High Court refused to take judicial notice of such substandard morality claimed to be practised in business. They cast heavy onus on the assessee to prove that books of account alone gave a correct picture and sworn statement to the bank was erroneous and motivated. 8. The above rule, however, is not an absolute rule, and in several cases it has been established that statement furnished to the bank was not a precise and accurate statement but was given on estimate basis. It was filed merely to complete the formality and was not verified. The loan given by ..... X X X X Extracts X X X X X X X X Extracts X X X X
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