TMI Blog1993 (4) TMI 106X X X X Extracts X X X X X X X X Extracts X X X X ..... figure of Rs. 84,10,068 by the Assessing Officer, but after further appeals before the CIT(A) and the Tribunal the same stood reduced to Rs. 4,09,381. It may also be mentioned that the assessee had a closing stock inventory of Rs. 28 lakhs and odd to which the Assessing Officer made an addition to the tune of Rs. 25,82,917 on account of under valuation of closing stock. This comprised of Rs. 25 lakhs in respect of raw hide and skins and Rs. 82,917 in respect of the following three items: . Rs. (i) Texla Electrolytic Capacitors 64,174 (ii) Rough Opthalmic blanks 3,288 (iii) Wattle Extract 15,455 2. It appears that on subsequent appeal before the CIT(A), the addition of Rs. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d these in an earlier part of our order, we do not repeat them. The discussion hereinafter refers to the main arguments advanced by the learned counsel inviting in the process our attention to the material on record and various reported decisions as follows: (i) That the main business of the assessee was to deal in raw hides and skins and the alleged under valuation had taken place in respect of three items in which the assessee had never dealt in the past. (ii) That the assessee had a very large closing stock inventory and the main addition of Rs. 25 lakhs on account of alleged under valuation stood deleted leaving thereby the minor addition aggregating Rs. 82,917 which was the subject matter of the penalty proceedings. (iii) There c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... art of a member of the assessee's staff and which had led to the wrong figure having been shown. (viii) That the assessee had obtained a certificate from one M/s Micron Electronics to the effect that the capacitors had been damaged in water although this did not appear to be a correct judgment since the assessee was able to dispose of these capacitors in the subsequent assessment years at fairly good rates. (ix) That in respect of Item No. 2, namely, Rough Opthalmic Blanks, the difference was only in respect of valuation since the assessee had applied a rate of 56 paisa per piece whereas the correct value was 58 paisa per piece, the difference being Rs. 3,000 and odd. That the aforesaid item remained in stock for a full year and subsequ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rded by these authorities in rejecting the view point canvassed on behalf of the assessee. According to him, there had been a deliberate concealment on the part of the assessee and it could not plead that it was unaware about the items which it was dealing in for the first time. Specific reference was made to the fact that in respect of Item No. 1, namely, Capacitors, the assessee had deliberately shown 2,800 pieces, the value being Rs. 17,976 and it was only after the ITO had detected the lesser figure shown the assessee had revised the same to 12,800 pieces but maintaining the same value, viz., Rs. 17,976. The further argument which was advanced was that it was not necessary to consider the past position in the assessee's case since there ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as per the Department was Rs. 82,150. It is the stand of the assessee that the figure of 12,800 pieces was wrongly typed as 2,800 pieces and in case the following calculation is undertaken then the value of Rs. 17,976 (approx) is arrived at: 82150/12800 x 2800 No doubt the assessee has been able to dispose of these capacitors subsequently at favourable rates, viz., the figure shown in the closing stock and the addition made by the ITO but in the absence of any material on record to attribute mala fide motive to the assessee, we are of the view that penal provisions are not attracted. 8. As regards the second item, namely, Rough Ophthalmic Blanks, we accept the arguments advanced by the learned counsel that the difference of Rs. 3,0 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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