Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2012 (12) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2012 (12) TMI 20 - AT - Income TaxPenalty u/s 271(1)(c) - addition due to difference in valuation of closing stock of diamonds - failure of assessee to produce stock register, show movement of goods - Revenue contended that assessee had valued the closing stock in an arbitrary manner to suit its convenience - Held that:- Every lot of diamond is expensive and unless and until the stocks are dealt with care and accuracy one cannot arrive at the profit or loss gained out of such purchases and sales. It is very much possible to list out all the pieces of diamonds purchased in a lot and the total cost apportioned to each of them on a scientific basis. Cost of each piece of diamond however small it may be, can be determined. In such circumstances there should not be any difficulty in arriving at the value of closing stock in hand. When the facts being so, the assessee has grossly erred and defied by not maintaining stock register in such a fashion so as to arrive at the correct value of the closing stock, or, did not produce the same before the Revenue, but has proceeded to value the closing stock in some method to suit its convenience. The learned AO had also made a clear finding that the assessee was valuing the closing stock every year based on different methods. Penalty levied for furnishing inaccurate particulars by invoking proceedings u/s 271(1)(c) is justifiable and therefore we uphold the same - Decided against assessee
|