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2014 (10) TMI 845 - AT - Income TaxAddition on account of deficit closing stock during the course of survey proceedings under section 133A - CIT(A) deleted the addition - Held that:- No reason to interfere with the order of the Ld. CIT(A). Revenue did not bring out any evidence about the deficit stock and assessment order is not speaking about how the deficit stock was arrived at in the course of survey proceedings even though the same was quantified at ₹ 39,28,298. Aassessee has accounted for sales of the deficit stock but as seen from the order of Ld. CIT(A), the same was accounted at ₹ 48,83,168. This aspect has not been reconciled by the ITO. Not only that assessee also admitted additional income of ₹ 10 lakhs which factor was also accepted by the A.O. by making only addition of ₹ 40 lakhs. Since, entire deficit stock cannot be considered as income of assessee, Ld. CIT(A) is correct in deleting the addition made by A.O. as assessee has already admitted gross profit at 25% which is in tune with the gross profit earned during the year on other turnovers. In fact, A.O. himself has recorded the facts that turnover for the year is increased by 31.13% and gross profit by 50%. Since A.O. accepted the book results and nothing was brought on record other than the so-called statement of the partner admitting additional income, we uphold the order of Ld. CIT(A) and dismiss Revenue grounds. - Decided against revenue
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