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2020 (5) TMI 72 - AT - Income TaxShortage of stock - Addition u/s 69 - Difference in Stock as per stock statement filed before Bank and as per books - CIT-A deleted the addition - HELD THAT:- CIT (A) has noted that the assessee has duly explained the difference in the valuation of the stock as given to the bank and as compared with the books of account of the assessee. CIT (A) has rightly observed that the method of accounting followed for valuation of the closing stock should have been applied in respect of the valuation of the opening stock also. CIT (A) has rightly noted from the statement of the Bank Manager that the stock was not physically verified by the bank at the spot. The assessee has duly explained through the charts that if the adjustment of shortage usually booked on the last date of the financial year as per the regular accounting policy followed by the assessee taken into consideration, there remains no / negligible difference between the stock statement given to the bank. The Ld. Counsel for the assessee in this respect has also explained that the stock statement given to the bank was on estimation basis and that the minor difference in this respect was required to be ignored. - Decided against revenue.
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