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2015 (11) TMI 1679 - ITAT KOLKATAAddition of discrepancy found in stock during the course of survey - Held that:- The difference in stock thus was worked out by the Assessing Officer without taking into consideration the movement of stock during the period from 01.09.2007 to 14.09.2007 and in our opinion, there was thus basic infirmity in the order of the Assessing Officer, inasmuch as the Oil Mills of the assessee being in operation during the said period, the movement of stock should have been taken into consideration by him. In this regard, it is also observed that although such working was stated to be filed by the assessee showing the relevant transactions for the period 01.09.2007 to 14.09.2007 before the ld. CIT(Appeals), there is no such specific mention in the order of the Assessing Officer about the said working having been filed by the assessee. Although the ld. CIT(Appeals) has brushed aside the said working by treating the same as an after-thought, we are of the view that the said working prepared and furnished by the assessee to reconcile the difference in stock as taken by the Assessing Officer of different dates, i.e. 01.09.2007 and 14.09.2007 is relevant and it should be considered and verified before making any addition on account of the alleged shortage of stock. We, therefore, consider it just and proper and in the interest of justice to set aside the impugned order of the ld. CIT(Appeals) on this issue and restore the same to the file of the Assessing Officer for deciding the same afresh. Addition on the basis of entries found recorded in the diary during the course of survey - Held that:- As rightly submitted by the assessee, both the entries in question dated 18.03.2007 and 20.03.2007 are falling in the financial year 2006-07 relevant to the assessment year 2007-08 and, therefore, the amount reflected therein aggregating to ₹ 3,00,000/- cannot be added to the total income of the assessee for the year under consideration, i.e. A.Y. 2008-09. Ld. D.R. has not been able to raise any contention to dispute this position. We, therefore, delete the addition made by the Assessing Officer and confirmed by the ld. CIT(Appeals) on this issue holding that both the entries found recorded in the diary being dated 18.03.2007 and 20.03.2007, the addition for the same could be made only in assessment year 2007-08 and not in the year under consideration, i.e. A.Y. 2008-09. Disallowance out of various expenses - Held that:- The assessee has not been able to raise any material contention except stating that the disallowance of 10% made by the Assessing Officer and confirmed by the ld. CIT(Appeals) out of various expenses is excessive and unreasonable. We are unable to accept the contention of the ld. Counsel for the assessee. Having regard to all the facts of the case including the type of expenses claimed by the assessee, the nature of business of the assessee and the quantum of expenses, we are of the view that the disallowance of 10% made by the Assessing Officer and confirmed by the ld. CIT(Appeals) for want of supporting vouchers and bills is quite fair and reasonable. We, therefore, uphold the impugned order of ld. CIT(Appeals) on this issue and dismiss the Ground of the appeal of assessee.
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