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2006 (10) TMI 124 - HC - Income TaxAddition on the closing stock - difference between the value of closing stock declared to the bank and to the income-tax authorities - maintaining books of account on day-to-day production - derives income from manufacture of tape back up units for personal computers and computers - HELD THAT:- We find there is evidence to show that stock declared to the Income-tax Department was supported by books of account. No detailed inventory was also available in the statement made to the bank. Except a mere value declared for overdraft purposes to the bank, there were no detailed items of stocks in support of the declared value. It was also pointed out that there was no physical verification of stock, either by the assessee or the bank at the time of furnishing the stock statement. The Tribunal as well as the CIT(A) have given a concurrent finding that the assessee declared closing stock for assessment purpose which is based on actual physical verification. There are enough materials available on record and the conclusion reached by the Tribunal is based on valid materials and evidence. In view of the same, there is no basis to treat the difference in value as the assessee's under-valuation of stock or undisclosed income. The Tribunal also rightly followed the principles enunciated by this court judgment reported in CIT v. Sri Padmavathi Cotton Mills [1997 (3) TMI 26 - MADRAS HIGH COURT]. Thus, we are of the view that there is no error or legal infirmity in the order of the Tribunal so as to warrant interference. Hence, we answer the questions of law in favour of the assessee and against the Revenue and the tax case is dismissed.
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