TMI Blog2011 (4) TMI 606X X X X Extracts X X X X X X X X Extracts X X X X ..... s. 92,00,000 as against the valuation made by the survey party at Rs. 1,05,46,697, thus giving relief of Rs. 14,46,697. - held that:- The entire case concerns about the appreciation of facts and no question of law arises. - Decided against the revenue. - IT APPEAL NO. 1151 OF 2009 - - - Dated:- 4-4-2011 - A.K. SIKRI AND M.L. MEHTA, JJ. Ms. Prem Lata Bansal and Deepak Anand for the Appellant. S.K. Arora for the Respondent. JUDGMENT A.K. Sikri, J. ‑ The respondent/assessee is in the business of sale of readymade garments. A survey was carried out at the premises of the assessee, during which difference in physical stock amounting to Rs. 40,00,000 was found. The assessee surrendered Rs. 29,00,000 during survey ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ,89,823 made by the Assessing Officer on account of difference in valuation of stock of Rs. 6,77,600. The Tribunal observed that the discount of 50 per cent is given by the assessee on goods worth Rs. 5,13,928 and discount of 75 per cent was given on goods worth Rs. 33,12,908, no discount was claimed in respect of stock worth Rs. 67,19,861 and thus overall discount came to about 14 per cent with reference to total stock. Accordingly, the Tribunal took the value of stock at Rs. 92,00,000 as against the valuation made by the survey party at Rs. 1,05,46,697, thus giving relief of Rs. 14,46,697. The Tribunal further applied G.P. rate at 20 per cent on the basis of preceding years in order to arrive at cost or market price, whichever is lower, a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ement of Shri Arvind Pandey, employee of the assessee entrusted the work of arranging and managing stock. In the statement of Shri Arvind Pandey, he stated that the sale price is printed on the tags attached to the salable goods, and these days a sale at the discount of 50 per cent was going on as per the signboard displayed outside the shop for the last one and a half month. He further stated that earlier we were selling the goods at the tag price. The Assessing Officer has examined the statement of partner and other employees and did not accept the assessee's contention that the goods were sold at the 50 per cent of the tag price for most of the time during any year. The Assessing Officer maintained the difference of Rs. 29,00,000 worked ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts, the old stock of absolute stocks are commonly sold at a discounted price by any businessman, which is found to be a common practice in the market, we are of the considered opinion that certain discount is to be given to tag price for the purpose of determining value of stock at cost of market price whichever is lower. The assessee has thus been able to explain as to why the difference of Rs. 29,00,000 in toto is not liable to be added as difference in the stock found at the time of survey as compared to the stock shown in the books. We, therefore, reduced the value of the stock of Rs. 1,05,46,697 by Rs. 14,46,697 to arrive at a rounded figure of Rs. 92,00,000. The actual sale price of the goods found at the time of survey is, thus, to b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ,60,000, as against which the assessee has worked out the value of the stock at Rs. 68,92,500 in the return of income. The assessee has disclosed an amount of Rs. 3,10,177 on account of difference in the value of stock which, in our opinion should be Rs. 6,77,600 being the difference between Rs. 72,60,000 and an amount of Rs. 65,82,400, the amount as per the trading account prepared on the basis of books. Thus, an addition on this account would be Rs. 6,77,600 as against Rs. 3,10,177 shown by the assessee and as against Rs. 29,00,000 taken by the Assessing Officer. Thus, the addition of Rs. 3,67,423 being the difference between Rs. 6,77,600 and Rs. 3,10,177 is further called for over and above the amount of Rs. 3,10,177 already disclosed by ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
