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2013 (6) TMI 594 - AT - Income TaxAddition towards difference in the gross profit - additional income disclosed during survey - addition made towards excess stock - survey conducted in the case of the assessee u/s 133A - CIT(A) deleted the addition - Held that:- Undisputedly, the assessee maintains books of accounts which were produced before AO during the course of assessment proceedings who did not find any defect or discrepancy in the books of accounts. Therefore, without rejecting the books results, AO cannot make addition on account of gross profit discrepancy. Further, the conclusion of AO to the effect that the gross profit declared by the assessee is very low is without any substance as it is evident from the comparable chart given the gross profit shown in the impugned assessment year is comparable to the gross profit shown for the preceding two assessment years. It is also a fact that the assessee has incorporated the excess stock found at the time of survey in the books of accounts and has declared profit thereon. Therefore, consideration of the excess stock found separately again would amount to taxing the same amount twice. No infirmity in the order of the CIT (A) in deleting to the addition made on account of gross profit discrepancy or on account of excess stock. In favour of assessee. Unexplained deposits in the bank account - CIT(A) deleted the addition - Held that:- As it is seen from the confirmation letter forming part of the order of the CIT (A) that the creditor is an income-tax assessee and all the details with regard to the advancement of amount of Rs.20 lakhs has been mentioned in the confirmation letter. The said confirmation letter not only establishes the identity of the creditor but also proves the genuineness of the transaction by giving the details of cheque Number, bank accounts etc., through which the transaction was made. It is also a fact that the amount of Rs.20 lakhs was also repaid by the assessee through cheque. Therefore there being no doubt with regard to creditworthiness, the creditor being an Income-tax assessee, there is no infirmity in the order of the CIT (A) in deleting the addition. In favour of assessee.
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