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2018 (6) TMI 1105 - AT - Income TaxAddition on account of difference in valuation of stock as reflected in the accounts of the assessee and as shown in the stock statement submitted to the bank - Held that:- As held by the Hon’ble Madras High Court in the case of Apcom Computers Pvt. Ltd. (2006 (10) TMI 124 - MADRAS HIGH COURT), difference in value of stock based on the inflated stock statement given by the assessee to bank for obtaining higher loan facilities on an estimate basis without any actual physical verification could not be treated as the undisclosed income of the assessee. To the similar effect is the decision in the case of Relaxo Footwear (2001 (11) TMI 14 - RAJASTHAN HIGH COURT) wherein it was held that no addition could be made to the income of the assessee on the basis of stock statement submitted to the bank which was deliberately inflated by the assessee only to get higher limit of credit from bank. Delete the addition of ₹ 10,00,890/- made by the AO and confirmed by the Ld. CIT(A) on the basis of inflated value of stock declared by the assessee to the bank for availing higher credit facility. - Decided in favour of assessee.
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