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2018 (12) TMI 1206 - AT - Income TaxAddition on account of deficit in stock - addition was made by the AO by taking the MRP of stock lying at the business premises - difference in computerized sheet as well stock as per physical inventory - Held that:- CIT(A) adopted gross profit rate of 55.68% and worked out the cost price at ₹ 13.71 Crores from this calculation cost price of physical inventory taken by the Survey team works out to ₹ 9,01,35,304/- and cost price of computerized sheet as maintained by the assessee comes to ₹ 13,71,90,491/-. Thereafter there remains a difference of ₹ 4,70,55,187/- (Rs.13,71,90,491 - ₹ 9,01,35,304) being deficit in the stock between stock as per assessee's noting in computerized sheet as well stock as per physical inventory taken by the Survey team. CIT(A) further observed that difference between the physical stock of inventory and stock as per notings on computerized sheets was due to various articles given on approval to various parties like Shopper's shop, Promart, Waman HariPethe. The stock given to the above parties . account for about to ₹ 3.22 crores which includes the stock of assessee's shops at R. City Ghatkopar and Borivli worth around ₹ 50 lakhs. Apart from that it was found that the assessee has given articles of ₹ 96 lacs for framing. CIT(A) further observed that complete name and addresses of invoices of all the parties to whom assessee had given goods on approval basis were also given to the Survey Officer on 19/10/2010. Accordingly, after having a detailed calculation, the CIT(A) reached to the conclusion that assessee has explained the difference to the extent of ₹ 4.18 Crores (Rs.3.22 +0.96) out of total difference of ₹ 4.70 Crores. Accordingly, the CIT(A) has deleted addition of ₹ 10.07 Crores and upheld addition of ₹ 52.55 Lakhs. It is clear from the order of CIT(A) that all the calculations of deficit in the stock was made are as per material on record. The detailed finding so recorded by CIT(A) has not been controverted by learned DR by bringing any positive material on record. Accordingly, we confirm the action of CIT(A) for deleting the addition and upholding part of the addition to the extent of 52.55 lakhs. There is no infirmity in the finding so recorded by CIT(A), which is as per material on record and therefore do not require any interference on our part - Appeal of the assessee as well as Revenue are dismissed.
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