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2011 (1) TMI 125 - AT - Income TaxSurvey - On verification of the accounts filed by the assessee, AO found that assessee has included the value of excess stock of Rs. 35,70,518 in the inventory of closing stock as on 31.3.2004 - The ld. CIT(A) confirmed the order of the AO holding that excess stock should be added separately and, therefore, remuneration payable to the partners should be consequently restricted in accordance with section 40(b) - for invoking deeming provisions under sections 69, 69A, 69B & 69C there should be clearly identifiable asset or expenditure - Once excess stock is treated as business income then assessee is entitled for higher remuneration to the partners as per section 40(b) - As a result, this ground of assessee is allowed Cash credit - Since the assessee was not able to further clarify, the AO treated the sum in respect of above persons as cash credit and added the sum of Rs. 1,05,000 in the total income - However, the assessee has raised the ground as cash credit - In the result, appeal filed by the assessee is allowed but for statistical purposes
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