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2018 (4) TMI 735 - AT - Income TaxAddition on account of difference in valuation of stock under the head undisclosed investment - produced no books of account - Held that:- Admittedly assessee is carrying on the business of jewellery but on the date of search the books of account or stock register was not produced. The assessee in post search enquiry has submitted the reconciliation of stock by producing the copies of the bill of purchase and sale as well as the approval notes for the goods sent and received on approval. The details before the DDI stating that there is no difference in the quantity of the jewellery. Valuation is at cost and the total quantitative details of purchase and sales and receipt and issue on approval is supported by proper documentary evidences. The assessee has also submitted the quantitative details which could not be shown to be concocted. No defect could be pointed out in such quantity details. The details of jewellery recorded on approval and sent on approval is supported by the documents produced before the ld AO but AO did not find any discrepancy in those details. Further, the valuation of jewellery made by the assessee on cost basis was also not disputed contrarily the cost of the jewellery was supported with the bills showing rates of purchases. Merely non maintenance of stock register by the assessee cannot result into addition unless the AO shows with conclusive evidence that quantitative details submitted by the assessee is incorrect. Admittedly the assessee has produced the books of account before the ld AO and DDI, no defects were pointed out therein. Therefore, merely because books were not produced at the time of search, such addition cannot be made. - Decided against revenue
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