TMI Blog2007 (10) TMI 376X X X X Extracts X X X X X X X X Extracts X X X X ..... hether the value of stock shown in the books of account was genuine or not and there was no reason to hold that the finding of the Tribunal was perverse. - 83 of 2007 - - - Dated:- 11-10-2007 - Y. R. MEENA C. J. and SMT. ABHILASHA KUMARI J. Mrs. Mauna M. Bhatt and Manish R. Bhatt for the appellant. None appeared for the respondent. JUDGMENT 1. Heard learned counsel for the appellant. 2. The following question is proposed for admission in this appeal. "Whether, on facts and circumstances of the case the Income-tax Appellate Tribunal was right in law in deleting the addition under section 69B of the Income-tax Act, 1961, made on account of difference in the closing stock furnished before the bank authorities for ava ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... We find that the Assessing Officer in support of his finding has relied on the decision of the hon'ble Madras High Court in the case of Coimbatore Spinning and Weaving Co. Ltd. v. CIT [1974] 95 ITR 375, the decision of the hon'ble Supreme Court in the case of Dhansiram Agarwalla v. CIT [1993] 201 1TR 192 (Gauhati) and concluded that the assessee was unable to discharge the onus to prove that books of account alone give the correct picture and the statement given to the bank was motivated. In the present case at hand, it is not disputed by the Revenue that in order to avail of cash credit facility against hypothecation of stock to the bank, the assessee has submitted the inflated stock and not the actual stock. The inflated stock was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4 dated 26-11-2005, this Bench of the Income-tax Appellate Tribunal has deleted similar addition. The Commissioner of Income-tax (Appeals) has sustained the addition at 10 per cent. of the excess stock of Rs. 80,25,662 (i.e., Rs. 1,42,86,870 the stock as per the bank statement minus Rs. 62,61,202 as shown in the regular books of account. In view of our finding that no addition can be made on this count, the order of the Commissioner of Income-tax (Appeals) confirming the addition cannot be sustained. The order of the Commissioner of Income-tax (Appeals) is, therefore, reversed and the addition of Rs. 9,75,476 made on account of undisclosed investment is deleted." 4. Whether the value of the stock shown in the books of account is genuine ..... X X X X Extracts X X X X X X X X Extracts X X X X
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