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2018 (1) TMI 1107 - AT - Income TaxAddition on account of difference in stock found as on the date of search and stock as per books of accounts - unaccounted income - addition of gross profit applying the rate of 26% on unaccounted stock - Held that:- Stock statements of the appellant are regularly submitted to the appellant's banker on monthly basis. The stock statements submitted during the period 1/4/2009 to 31/8/2009 were also submitted to the CIT(A) for his perusal. But both the authorities did not consider the reconciliation submitted by the appellant and authorities relied statement of the appellant u/s.142 of the Act though the appellant reflected for his statement after one month and thereafter also filed an affidavit to that effect but lower authorities failed to consider his contention. After hearing both the parties, we set aside this issue to the file of the AO to examine the reconciliation statement filed before the lower authorities and will decide the matter Addition applying gross profit @ 22.82% on difference in stock found as on the date of search - Held that:- As we can see that appellant’s profit in earlier year was less than the year under consideration meaning thereby his Gross Profit was higher than earlier years. Therefore, in such circumstances assessee’s contentions cannot be denied. In the result, this ground of appeal is allowed.
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