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2013 (4) TMI 66 - AT - Income TaxUnexplained investment in stock - stock statement submitted to bank - CIT(A) deleted the addition - Held that:- The assessee is required to explain its stock position, however, there may be difference in valuation but here the contention of the assessee is that before bank valuation of stock was based on the weight is incorrect. No material has been brought on record before us to substantiate that the limit granted by bank to assessee were fully exhausted. Further the observation of the CIT (A) that the declaration of higher stock to bank is out of business expediency and not an offence is not supported by any material on record. Matter remanded back for fresh examination to the A.O. and he should bring on record the correct factual position that whether the sales made by assessee is on the basis of weight or numbers, whether the stock submitted to the Bank was in Kgs. or in numbers and whether the assessee has been submitting higher stock figures as compared to its book stock to bank in the past and for earlier months in the year under appeal. Addition on account of interest expenses - CIT (A) deleted the addition - Held that:- CIT (A) gave a finding that Shri Jayantibhai Maniar was the son of another partner and was also an employee of the firm. The A.O. has made an addition as the assessee had advanced interest free loan out of the interest bearing funds. The advance given by the firm was for the business expediency. In favour of assessee.
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