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2021 (8) TMI 869 - ITAT AHMEDABADExcess stock found during the survey - Foreign exchange fluctuation was debited in the account after the post survey period and due to this abnormal loss excess stock found during the survey had been adjusted - HELD THAT:- It is relevant to mention that such foreign exchange loss was not found to be genuine by the Ld. AO. When the profit earned due to foreign exchange fluctuation in the earlier year was offered to tax while filing return by the appellant, the foreign exchange loss in the year under consideration should also be allowed on the same analogy has also been considered by the Ld. CIT(A). In fact, the Ld. CIT(A) observed that the excess stock found during the survey has already been included in the closing stock and thereby the closing stock in the books of accounts has been increased. The said fact is also emanated from the records filed before us. In that view of the matter the contention of the appellant that the addition tantamounts to double taxation is in fact justiciable. Over all the decision of addition on the observation that the appellant has not offered the additional stock found during the survey as made by the Ld. AO is under the present facts and circumstances of the Act not sustainable which has rightly been taken into consideration by the CIT(A) while deleting addition without any ambiguity so as to warrant interference. Hence, the appeal filed by the Revenue is found to be devoid of any merit and, thus, dismissed. Disallowance of stores and spares expenses - HELD THAT:- Upon perusal of the record particularly the ledger account of stores and spares of the firm, we find that it is specifically demonstrates the expenses in question which has further been debited in the books of accounts. Moreover, similar expenses have also been allowed in the previous year. Thus, the view taken by the Ld. CIT(A) is found to be contradictory and we do not find any rational in such decision made by the CIT(A) when the primary onus on the part of the assessee is discharged and no evidence is found that purchase has been used for non-business purposes. Thus, we do not find any justification in disallowing the said expenses out of stores and spares account in the present facts and circumstances of the case taking into consideration the assessee line of business and hence we allow the same.
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