Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2017 (7) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (7) TMI 728 - AT - Income TaxAddition on account of excess stock - difference in stock statement submitted with bank and as per books of accounts - Held that:- CIT(A) has correctly stated that during the year there is only a difference of 3 bags of sugar which is practically negligible looking to the operation of the assessee. Further it is not the case of the revenue that assessee has pledged the stock to the banker it is merely a case of hypothecation of the stock where the possession of the stock remains with the assessee and not under the lock and key of the banker. As we do not see any infirmity in the order of the Ld. CIT appeal we confirm his finding in deleting the addition of ₹ 113905000/– made by the assessing officer on account of excess stock on basis of stock statement given to the banker. Further the various decisions cited by the revenue were with respect to the pledge of the goods which is not the case here as it is a case of hypothecation of the goods, valuation of the closing stock which is inflated the case cited by the revenue whereas in the present case there is no allegation of the inflation of quantity of stock material in view of this the reliance placed by the revenue on all those decision does not help its case. Ground No. 1 of the appeal of the revenue is dismissed
|