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2023 (9) TMI 1033 - AT - Income TaxDifference of stock of silver - Addition on account of alleged excess stock-in-trade on the date of survey - reliance on statement recorded on oath during the survey u/s 133A of the Act about stock of silver to the tune of 200 Kg of silver - according to the AO, when the physical inventory of silver was being carried out, mob of locals/association of traders came inside the shop and disrupted the survey operation; and in the ruckus created by the unruly mob, the physical inventory couldn’t be completed and the papers prepared by them, were torn and resultantly, the survey team had to leave the jewellery premise without completing their assigned task. HELD THAT:- As statement u/s 133A of the Act recorded on 06.01.2012 cannot be held to be voluntarily given; and the assessee’s explanation shows that he made the statement on estimation which includes both pure & impure silver. And since no physical inventory was prepared (due to disturbance) there is no other material in the hands of the AO/Ld. CIT(A) to make/confirm the allegation of excess stock of silver, therefore the addition made of Rs. 1,84,080/- was not warranted. As assessee has explained within 15 days the difference of stock as admitted during survey and reflected in books, which is a plausible view, so assessee’s appeal is allowed. Therefore, the addition made by AO cannot be sustained and so directed to be deleted. Appeal of the assessee is allowed.
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