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2014 (11) TMI 935 - HC - Income TaxAddition made – Difference in the amount declared in books of accounts and statement furnished to Bank - Whether the Tribunal has substantially erred in law in restoring the addition by way of difference between the stock as on March 31, 1990 shown in the regular books of accounts of the appellant and that declared in the statement furnished to the Bank in respect of hypothecation facility availed of by it – Held that:- Assessee rightly contended that in Commissioner of Income Tax - III Versus Riddhi Steel And Tubes Pvt. Ltd. [2013 (10) TMI 291 - GUJARAT HIGH COURT] the same matter has been decided - No errors were found at any stage in the report submitted by these auditors and for the past eight years, the assessee had been following continuously/ consistently the method of accounting, as provided u/s 145 of the Act, valuing the closing stock and inventory, as provided u/s 145 A of the Act - only on account of inflated statements furnished to the banking authorities for the purpose of availing of larger credit facilities, no addition can be made if there appears to be a difference between the stock shown in the books of account and the statement furnished to the banking authorities – the order of the Tribunal is set aside – Decided against revenue.
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