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2012 (8) TMI 94 - AT - Income TaxTreatment of closing stock found at the time of survey - CIT(A) invoked provisions of s. 263 against AO's order u/s 143(3) - Held that:- From the perusal of the Order u/s 143 it is clear that the AO while framing the assessment order had considered the submissions of the assessee and carried out cross verification of certain sales and purchases particularly in respect of the period after the date of survey, thus appears that the AO had examined the aspect of valuation of closing stock and had applied his mind and after being satisfied passed the assessment order. If the closing stock as worked out in the show cause notice is considered, the Gross profit of the assessee would be on a higher side i.e approximately 27.2% as compared to the GP of 22% taken by the survey party and as estimated by the AO. This also indicates that the AO has verified the details of closing stock - CIT has not been able to establish and pin point unequivocally the error or the mistake made by the AO which makes the order unsustainable in law as the finding of the CIT must be clear, unambiguous and not debatable - in favour of assessee.
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