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2021 (3) TMI 1147 - AT - Income TaxAddition of undisclosed stock - HELD THAT:- AR has cited an order of ITAT Jaipur Bench in the matter of Stone Age (P.) Ltd.. [2019 (6) TMI 388 - ITAT JAIPUR] wherein it is held that where there was practically no difference in physical inventory taken by survey team viz-a-viz inventory as per books of account, impugned addition made on account of difference in value of stock was to be deleted and merely on the basis of statement recorded of the Director of the assessee-company with no corroborative material on record, had no legal force and thus same deserved to be deleted. The affidavits of the parties were rejected by the lower authorities on the basis of treating those affidavits as self-serving documents but documents submitted by the persons who were doing business from the same premises were not thoroughly examined and their Income Tax Returns were not considered by the lower authorities, wherein all the details with regard to their income were mentioned and no material was provided, on that basis addition was made and assessee was not allowed to cross-examine whose statements were relied for making addition in the hands of the assessee. In our considered opinion, whatever material or statement had been basis of the addition that should have been made available to the assessee and ought to have given opportunity to cross-examine the person and inspect the document, but in this case, such exercise was not carried out by the Department to the assessee and same amounts to miscarriage of justice. Since books of accounts were not rejected and no opportunity was provided to the assessee for cross-examination of persons who have given their statements against the assessee, so we have to give benefit of doubt to the assessee. In view of the foregoing discussion and respectfully following aforesaid judgments, we allow appeal of the assessee.
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