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2018 (3) TMI 1651 - AT - Income TaxAdditions on the basis of stock statement submitted to Bank - no difference found in the physical stock and the book stock on the date of survey. - It was explained that due to the change in accounting software, the shortage entry of preceding years was not picked up resulting overstatement of stock as per books of accounts. It was explained that the closing stock as per the books of accounts is carried forward from preceding years without booking of the shortage of earlier years and also. Held that:- The difference found in the such statements and the books of accounts cannot be added. The Hon'ble High Court of Gujarat in the judgments referred to hereinabove have taken a consistent view that were Assessing Officer made addition to income of assessee on plea that there was difference in quantity and value of stock shown in books of accounts vis-à-vis as shown to bank, impugned addition are not justified. The Hon'ble High Court has further stated that where inflated statement was furnished to banking authorities for availing of higher credit, difference of stock shown in books of accounts and in statement furnished to banking authorities could not be treated as undisclosed investment. - Decided in favor of assessee.
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