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2013 (11) TMI 1432 - AT - Income TaxValuation of stock – discrepancy between stock statements filed in Bank and stock shown in books of accounts - Held that:- The practice of declaring higher stock to the bank to get higher loan facility, is a fact of life – Following CIT vs. Shree Padmavathy Cotton Mills [1997 (3) TMI 26 - MADRAS High Court] - The books of account had not been rejected by the department as not representing the correct stock position; and that the assessee had declared a higher quantity of closing stock to the bank for the purpose of securing a loan - The Tribunal arrived at the conclusion that the closing stock declared in the return filed by the assessee was based on the books of account and it should be accepted rather than the closing stock as declared to the bank - The inspection by the bank officials was only indirect evidence and the same should not be relied upon – Following Parimisetti Seetharamamma vs. CIT [1965 (4) TMI 21 - SUPREME Court] - The assessee's income is to be assessed by the ITO on the basis of material which is required to be considered for the purpose of assessment and ordinarily not on the basis of the statement which the assessee may have given to a third party, unless there is material to corroborate that statement of the assessee given to a third party - Decided against Revenue.
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