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2019 (11) TMI 197 - AT - Income TaxAddition by applying G.P rate of 6.39% on alleged short stock - HELD THAT:- AO accepted the working and the explanation of the assessee (and has not gone by the valuation carried out by the survey team) and basis the same, where he has held that physical stock is less than the book stock by ₹ 34 lacs, which should actually be ₹ 31,96,346 (₹ 1,99,71,757 less ₹ 1,67,75,411), we donot see any infirmity in the order of the AO. The argument of the ld AR that instead of 25%, where 15% average variation is taken, there would not have been any difference cannot be accepted for the reason that the assessee was duly provided the opportunity by the Assessing officer to explain the difference and thereafter, even before the ld CIT(A) and before us, no such working is submitted to support the 15% average variation. The physical stock being less than the book stock effectively means out of book sales to the extent of ₹ 31,96,346 and applying gross profit so declared by the assessee @ 6.39%, the addition comes to ₹ 204,246 (as against ₹ 217,260 determined by the AO) which is hereby confirmed. - Appeal of the assessee is partly allowed.
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