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2016 (1) TMI 373 - HC - Income TaxBags of Dhania and Chillies lost and damaged by the Railways - ITAT sustaining the valuation of the closing stocks of such goods at the same rate as that of non-damaged goods - Held that:- The Commissioner of Income- tax (Appeals) has rightly held the closing stock is to be valued either at the cost price or the market rate whichever is less and accordingly valued closing stock of Chillies and Dhania on the basis of the cost price. - Decided against assessee Value of unexplained excess stocks of Haldi, big cardimum and Mangraila - Held that:- Where an assessee is found to be in possession of stocks which were not entered in the account books, the assessee has to explain the nature and source of the stocks and if that is not satisfactorily explained, the value of the stocks can always be treated as assessee's income. We do not find any error in the above view. So far as the addition of ₹ 34,675 is concerned which was added towards unexplained investment in respect of the excess stocks of Haldi, big cardimum and Magraila as the source of investment had not been explained by the assessee. - Decided against assessee
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