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2018 (8) TMI 1207 - HC - Income TaxCharging section for discrepancy between book value and physical value of capital work in progress- ITAT observed that the same cannot be taxed u/s 69C of the Income Tax Act, but it can be taxed u/s 69 to 69B only - ITAT observed that Section 69C of the Act would not be applicable to the facts of the present case as there is no evidence of any unaccounted expenditure. The difference was only on account of estimation of the value of Work in Progress by the site engineers in November, 2008 and actually arriving at the value on physical verification which is reflected in the return of income as on 31.3.2009. In the above circumstances, no occasion to apply Section 69C of the Act would arise. Held that:- The proposed question that the Tribunal held that there is a difference in the book value and the physical value of the Work in Progress is factually not correct. We did point out this to the counsel for the Revenue but he insisted to pressing this question. However, during the course of his submission, he was not able to substantiate the above presumption in the question as framed. In the above view, in the facts of this case, question as proposed is academic, unless the Revenue first challenges finding of fact arrived at by the Tribunal. The finding of fact is that, there is no excess work in progress than that declared by the RespondentAssessee as on 31.3.2009 and the valuation done of the workinprogress as on 31.11.2008 was only on provisional basis. Moreover, even if assume that the closing stock i.e. workinprogress is in excess of that recorded/disclosed by the Respondent, the same has to be added to the income only under Section 69A of the Act - Decided against the revenue.
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