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2019 (9) TMI 1264 - AT - Income TaxAddition on stock difference or understatement of sundry debtors - assessee has over stated the values by inflating the unit rates to increase the value of closing stock to the bank, but the quantity remained the same - HELD THAT:- Value of the stock declared in the books of accounts is as per the purchase bills and correctly reported. There was no difference in physical stocks declared to the bank and accounted in the books of accounts. The value of closing stock declared in the books of accounts was duly supported by the purchase bills. We also observe that the sundry debtors were also correctly reported and grouped in the books of accounts and no other evidence was brought on record by the department to controvert the above findings. The department did not make out a case of unaccounted stock or the suppression of trade debtors. The facts of the assessee’s case are similar to the decision of M/S. SRI TARAKA JEWELLERS, NEW PARKASHAM BAZAR, NALGONDA [2013 (7) TMI 1091 - ANDHRA PRADESH HIGH COURT] and the decision of this Tribunal in the case of Thatavarthi Ramesh Babu [2017 (12) TMI 577 - ITAT VISAKHAPATNAM] . Therefore, respectfully following the view taken by Hon’ble High Court and the ITAT, we hold that there is no reason for making the addition on stock difference or understatement of sundry debtors, hence, we set aside the order of the Ld.CIT(A) and delete the addition made by the AO. - Decided in favour of assessee.
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