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2014 (11) TMI 1050 - AT - Income TaxUnexplained investment - CIT(A) partly deleted the addition - Held that:- merit in making addition by A.O. or partly being confirmed by Ld. CIT(A). First of all, the stock taken was done in the middle of the year and assessee has every right to reconcile the stocks but no such opportunity was given. Further, when assessee explained in the statement that accounting in the books of accounts is about net non-defective area, the officers of survey could have examined this contention and establish whether statement of assessee is correct or not, given in the course of survey. Nothing was done except quantifying the stock. As seen from the order, Ld. CIT(A) accepts that there could be adjustments for the defective pieces/slabs. However, in his wisdom, he restricted the allowance to 10% without any basis. Considering that books of accounts were not rejected and special auditor in his report also has not pointed out any defects, we are of the opinion that the balance of the amount also should be deleted. In fact, excess area arrived at in the stock inventory is about 15% of the stock actually recorded by assessee in the books of accounts and as submitted there could be variation to the extent of 15% to 18%. In view of this, we delete the balance of the amount also. - Decided in favour of assessee
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