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2012 (7) TMI 757 - AT - Income TaxAddition on account of variation of closing stock - machinery lying in closing stock - assessee contended that average price of the machines could not be taken - Held that:- No reason to dispute the fact that the machines lying in stock were sold to M/s. Finolex Cables Limited for Rs.30,72,000 as AO did not provide any evidence in support of its contentions the machines lying in stock were different than the ones supplied to M/s. Finolex Cables Limited. The Single Spoolers Type S 631 -2 numbers, which are part of the finished goods valued at Rs.13,32,448 were sold to Finolex Cables Ltd. sale invoice bearing Rs.30,72,000 in the month of October, 2007 and not in the month of April, 2007. Considering the G.P. rate of 17.8% in respect of the said machines and also considering the sale price of Rs.30,72,000, the finished pronlduct valued at Rs.13,32,448 is certainly a case of under valuation. Therefore the said order of the CIT(A) is reasonable and it does not call for any interference - in favour of assessee.
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