TMI Blog2012 (4) TMI 465X X X X Extracts X X X X X X X X Extracts X X X X ..... d that:- The mere fact that value furnished to the bank is without any detail or verification by the bank may not constitute the basis to make additions - there are categorical finding that the assessee- respondent had maintained broad details of the stock, its consumption, production and closing balance and the accounts have been maintained on day to day basis which have been accepted by the Excise and VAT authorities – in favour of assessee. Depreciation - depreciation @ 50% on the purchase of machinery under TUF Scheme as against depreciation @ 25% allowed by the A.O.- Held that:- The machinery has been purchased as per TUF Scheme, making the assessee- respondent eligible for deduction at higher rate - the nature of stock purchasing i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... T(A) directing the Assessing Officer to delete the addition of Rs. 8,38,77,635/- made by the AO on account of difference in the value of stock as per stock statement submitted to the Bank and that as per the books of account; and ( iii ) Whether on the facts and in the circumstances of the case, the Hon'ble ITAT was right in law in upholding the order of the CIT(A) directing the Assessing Officer to allow depreciation @ 50% on the purchase of machinery under TUF Scheme as against depreciation @ 25% allowed by the A.O." 2. We have heard Mr. Rajesh Sethi, learned counsel for the revenue- appellant at a considerable length on all the three questions. 3. In respect of question No. (i) it is conceded as a fact that the appeal of the r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... where the difference in the quantity of stock is not proved and the stock is neither pledged nor verified by the bank official then no addition could be made. It is further evident that the assessee filed various documents relating to VAT assessment, excise records including valuation of the stock and invoices and bills for valuation of the stock. The stock has been accepted by the VAT department of Government of Haryana and the same stock has been taken for the purposes of excise records. The Assessing Officer did not find any defect in the maintenance of the record which lead to the rejection of stock records or books of account. The assessee- respondent claimed that the statement submitted to the bank is merely a figure, not supported b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Sethi, learned counsel for the appellant- revenue, we find that the findings have been recorded on the basis of evidence which are factual in nature. The mere fact that value furnished to the bank is without any detail or verification by the bank may not constitute the basis to make additions in face of other evidence to the contrary. There are categorical finding that the assessee- respondent had maintained broad details of the stock, its consumption, production and closing balance. The accounts have been maintained on day to day basis which have been accepted by the Excise and VAT authorities. The Assessing Officer did not point out any discrepancy in the books with reference to purchase, sale or closing stock. The findings reached by the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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