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2023 (2) TMI 560 - AT - Income TaxAddition of excess bagasse stock - revenue from suppressed sales of surplus stock of bagasse - method of valuation followed by the appellant - HELD THAT:- From the audited financial statement it ostensibly transpires that, the appellant showed no closing stock of bagasse. The Ld. AO, underlining the absence of stock records, after allowing the standard consumption from the estimated production of bagasse, the revenue from the suppressed sales of surplus stock of bagasse has carried out the addition. Since the appellant failed to negate the estimation of excess stock of bagasse available for sale and its valuation with depreciative & cogent material on record leaves the computation made by the Ld. AO doubtless, thus finds force in taxing the same as revenue from suppressed sales. And the said action of Ld. TAB finds force in the light of judgement of Hon’ble Supreme Court in “CIT Vs British Paints India Ltd. [1990 (12) TMI 2 - SUPREME COURT] wherein held tha where accounts are prepared without disclosing the real cost of the stock-in-trade, albeit on sound expert advice in the interest of efficient administration of the company, it is the duty of the ITO to determine the taxable income by making such computation as he thinks fit. We see no reasons to interfere with the action of the Ld. TAB in bringing to tax the revenue from suppressed sales of surplus stock of bagasse, ergo we order accordingly.
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