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2018 (9) TMI 219 - HC - Income TaxDiscrepancies in valuation of stock - stock valuation was lower in the tax audit report, but the assessee wanted the Revenue to go by the tax audit report only - Held that:- No explanation was given and no attempt was made to reconcile the differences. The stock registers were not produced except claiming that there is a variation due to lack of knowledge of operating computer software by the accountant. No variation statements were filed before A.O. or the ld. CIT(A) or before us. Illustrations were sought to be given to demonstrate the as to the inappropriateness of valuing the stock as Average cost method. In our considered view the burden of proof lay on the assessee to explain the variation and this was no discharged. The assessee filed a printout of the stock journal register and item register for the relevant period before the First Appellate Authority and has sought to explain the differences by way of examples. This, in our opinion, does not prove the case of the assessee. The assessee could not controvert the finding of the First Appellate Authority that he has not maintained carat wise details of the stock. In any event, opening stock as well as the closing stock for all the three assessment years have been valued on the same principles i.e. average stock method. - Decided against assessee.
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