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2012 (9) TMI 508 - AT - Income TaxSuppression of stock – Assessee made advance payment to party against purchase of land – Balance amount to be paid to seller was added to closing stock and same was offered for Tax u/s 153A – Closing stock become opening stock of next year – Held that:- As the variance in the closing stock as a result of advance amounts having been considered as part of the closing stock. By deleting the advance drive correct value of closing stock. Therefore, upheld the order of CIT(A). Decision in favour of assessee Interest u/s 234A & 234B – Held that:- If AO made the impugned addition and same is deleted by CIT(A) & ITAT. When there is no demand of Tax then on what amount interest is to be levied. Therefore, Decision in favour of assessee. Whether only income which escapes assessment can be brought to tax in assessment u/s.153A – Held that:- Assessee can claim any new deduction out of the income assessed u/s 153A. The AO will ascertain if the incurring of the liability is certain and that it has been estimated on a reasonable basis. He will allow the deduction subject to satisfaction. Therefore case remand back to AO.
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