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2015 (7) TMI 401 - AT - Income TaxDisallowance of labour expenses - Held that:- No specific error in the order of the CIT(A) could be pointed out by the AR of the assessee. The AR of the assessee could not explain the discrepancy pointed out by the CIT(A) in the confirmation and statement of Shri Ajitbhai and Shri Harishbhai. No material was brought before us by the AR to show how much labour charge expenses was accepted in the case of the assessee in earlier years. In the circumstances, we do not find any good reason to interfere with the order of the CIT(A) - Decided against assessee. Addition on account of the difference in the value of closing stock - Held that:- Assessee maintained day-to-day stock register and after examination of the same no mistake could be pointed out by the Revenue in the same. The auditor of the assessee has also not made any adverse observation in respect of stock disclosed by the assessee in its books of accounts. In our considered view, the book result reflected by regularly maintained books of accounts cannot be rejected by the Revenue without pointing out any specific error in the entries in the books of accounts, merely on the basis of a statement made by the assessee to a third party. Possibility of mistake in the stock statement furnished to the bank cannot be ruled out. No material was brought before us by the Revenue to show that the statement furnished by the assessee himself to the bank was sacrosanct and the statement furnished by the very same assessee in the return of income was incorrect. In the above circumstances, in view of the decision of Hon’ble Madras High Court in the case of CIT Vs. N. Swamy (1998 (9) TMI 27 - MADRAS High Court) the addition made by the Revenue is not sustainable - Decided in favour of assessee.
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