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2019 (4) TMI 1218 - ITAT DELHIAddition on the basis of statement in survey u/s 133A - Difference in the closing stock and excess cash found - Addition on account of difference in cash and stock as per books of accounts and actual found by the Income Tax Official - Assessee filed certain reconciliation statement regarding the discrepancy in cash and valuation of closing stock - HELD THAT:- The assessee during the course of assessment proceedings had filed the movement of stock from 1st April, 2007 till 17th May, 2007. It has also given the quantity and rate of the stock found during the course of survey. We find AO, instead of examining the same has gone by the statement of the partner during the course of survey. No doubt, the assessee, in the instant case, had surrendered certain amount during the course of survey on the basis of certain discrepancies pointed out to one of the partners regarding the discrepancy in cash and the discrepancy in the valuation of closing stock. However, the same, in our opinion, cannot be conclusive and binding on the assessee once the assessee is able to substantiate with evidence to the satisfaction of the A.O. regarding the discrepancies. The lower authorities in the instant case appears to have made the addition solely on the basis of the statement recorded during the course of survey instead of examining thoroughly the reconciliation statement filed by the assessee during the course of assessment proceedings regarding the difference in the cash found and the difference in the valuation of closing stock - restore the issue to the file of the AO with a direction to thoroughly examine the reconciliation statement filed by the assessee - grounds allowed for statistical purposes.
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