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2017 (1) TMI 46 - ITAT KOLKATAAddition on account of closing stock difference - Concealment of income from other sources - addition on account of closing stock submitted by the assessee to the bank and in the regular books of account and stock register maintained by the assessee - Held that:- It is a common knowledge that the balance sheet prepared as on 31.03.2008 is only in respect to the closing stock as on that date and not the previous date or the subsequent date. So even if there is a variation in the closing stock as on 05.04.2008, it cannot give rise to any fact which will point out that there is a inflated closing stock shown by the assessee to the bank for hypothecating the goods for the purpose of credit notes in CC Account as on 31.03.2008, which is reflected in the balance sheet which is audited. We find that the ld. CIT(A) erred in going through the replies forwarded by the State Bank of India to the AO which forms part of the remand report to come to a conclusion that the State Bank of India has physically verified the stock as on 31.03.2008 when the fact remains that the assessee’s contention was that the closing stock shows to this bank was dated 05.04.2008 and the fact remains that bank has never stated that it has physically verified the stock of the assessee. Therefore we set aside the order of the ld. CIT(A) and we direct the deletion of the addition made by the AO which was added by the AO as concealed income from other sources. - Decided in favour of assessee Fresh addition of bogus purchase - addition made without confronting the appellant - Held that:- Assessee’s statement before the ld. CIT(A) which have been reproduced above, wherein the assessee has candidly made admission which has been forwarded to the AO for remand report and thereafter the ld. CIT(A) in all fairness has taken the written submission from the assessee and thereafter passed the order after hearing the assessee. In such a scenario the grounds of appeal raised by the assessee that without confronting the assessee in respect to the addition has no legs to stand and therefore is devoid of merits. Therefore we dismiss the appeal on this issue.
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