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2013 (8) TMI 140 - HC - Income TaxUndervaluation of closing stock - CIT confirmed the addition - Tribunal deleted addition - Held that:- assessee had wherever found that the rough diamonds are having cost less than the market value, it had valued them at the cost. Wherever the market value of the rough diamonds is less than the cost, the assessee has applied the market value. This fact was not denied by the Assessing Officer. Any objection raised by the Assessing Officer was against the market value determined by the assessee. The onus is on the assessee to prove that the market value of the stock is less than the cost but it is a case where there is no independent evidence available which may confirm the market value. In the case of rough diamonds it is only the estimate, which can work out by the expert. If the Assessing Officer was not satisfied with the market value taken by the assessee, he could have taken the assistance of the expert but the Assessing Officer merely rejected the method of valuation consistently followed by the assessee and accepted by the Revenue in the earlier year and hence without obtaining any expert's opinion on the subject the Assessing Officer could not have rejected market value taken by the assessee - Following decision of The Assistant Commissioner of Income Tax Versus B. Sureshkumar & Co (RF) [2008 (7) TMI 849 - GUJARAT HIGH COURT] - Decided against Revenue. Genuineness of the transactions - Certificate for deduction at lower rate issued - Tribunal deleted addition - Held that:- when the certificate for deduction at source has already been issued, the question of doubting the identity of the payee or the genuineness of the transaction would not arise - No substantial question of law arises - Decided against Revenue.
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