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2023 (4) TMI 103 - AT - Income TaxPenalty u/s 271(1)(c) - undisclosed stock addition found during survey proceedings - addition made adopting different method of valuation by assessee and the government valued valuer - HELD THAT:- CIT(A) deleted the entire penalty on the basis of decision of Dilip Shroff Vs CIT [2007 (5) TMI 198 - SUPREME COURT] wherein it was held that addition, which is a result of difference in valuation cannot be held as concealment of income. Hon’ble Bombay High Court in CIT Vs Aarkay Saree Musium [1990 (8) TMI 97 - BOMBAY HIGH COURT] held that when certain additions were made in trading account by the AO, it did not necessarily follow that the assessee had concealed the income. And held that Tribunal was right in cancelling the penalty order. No reason to differ with the finding of the CIT(A), which we affirm. In the result, the grounds of appeal raised by the revenue are dismissed. Addition on account of difference in method of valuation - Once the valuation of assessee was disturbed by the AO himself it was the duty of AO to correct the opening stock of subsequent year. We find that the CIT(A) after following the decision in V.K.J. Builders & Contractors (P) Ltd. [2009 (8) TMI 101 - SUPREME COURT] directed the AO to correct the entry of opening stock. We do not find any illegality or infirmity in the order of ld. CIT(A) which we affirm. In the result, grounds raised by the revenue is dismissed.
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