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2018 (9) TMI 1562 - HC - Income TaxAddition made on account of bogus opening stock - assessee had manipulated the stock and bogus opening stock was reported in the books of account and in ROI - ITAT deleted the addition - Held that:- As decided in PRINCIPAL COMMISSIONER OF INCOME TAX, SURAT 1 VERSUS JUGAL KISHORE MAHENDRA BIYANI [2018 (9) TMI 717 - GUJARAT HIGH COURT] the assessee had shown sale of such stock after May 2003, and the sale proceeds were also received during the year under consideration. The Tribunal noted that in the declaration before the Excise Authorities, the assessee had shown the stock of the same value pertaining to different kinds of gray fabric admeasuring 17,57,165 meters. The Tribunal also noted that such stock was cleared in subsequent period, for which, monthly declarations were filed. It can thus be seen that the entire issue is based on appreciation of record. Commissioner of Income Tax (Appeals) and the Tribunal concurrently held on facts that the assessee's declaration was genuine. No question of law arises. Addition made on account of bogus credit - ITAT deleted the addition - Held that:- Tribunal while confirming the view of the Commissioner of Income Tax (Appeals), noted that there was sufficient evidence of the genuineness of the creditors. Further, such addition of the purchases would give distorted gross profit rate as compared to gross profit rate disclosed in similar type of business, interalia, on such grounds, the Tribunal dismissed the Revenue's appeal - these issues are entirely based on appreciation of record. Commissioner of Income Tax (Appeals) and the Tribunal concurrently held in favour of the assessee. No question of law arises.
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