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2021 (10) TMI 680 - AT - Income TaxExcess stock of gram pulses not recorded in the books of account - As per assessee stock taking was not done either in the presence of the assessee or his Authorized Representative - assessee also submitted that the basis of calculation of excess stock and short stock and the inventory sheet prepared during the course of survey should be provided - CIT-A deleted the addition - HELD THAT:- We observe that the search was conducted on Dudani Group on 05.10.2015 u/s 132 - A survey action was also conducted on the assessee firm premises. Physical stock was done by the survey team. Additions were made by the ld. AO on the basis of inventories of stock and trading account prepared by survey team which were allegedly different from the amounts as per books of accounts maintained by the assessee. Assessee has submitted a summary of stock as on the date of survey i.e. 05.10.2015, as per books of account of the assessee and alleged stock inventories prepared by the survey team. CIT(A) deleted the impugned additions on appreciating the following facts:- i). Survey team did not consider the stock kept at “Pragati Warehouse” ii). Survey team wrongly analyzed the stock of ‘Channa’ as stock of Channi which was actually recorded in the regular books of account as stock of “Channa” which was kept at “Narmada Valley Warehouse”. iii). Revenue authorities not providing the basis of valuation of physical stock to the assessee, thus denying the principles of natural justice. iv). Revenue failed to bring any instance of bogus purchase made by the assessee. v). No cogent/positive/incriminating material was found during search/survey to support the alleged addition. Find no infirmity in the finding of Ld. CIT(A) and the same stands confirmed. Accordingly all the grounds raised by the revenue are dismissed.
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