9911796707
TMI Blog2014 (2) TMI 645X X X X Extracts X X X X X X X X Extracts X X X X ..... of closing stock and now after detecting the same by the revenue, assessee has tried to mislead the fact by supplying a revised closing stock list. 2. On the facts and in the circumstances of the case, the Ld CIT(A) has erred on facts and in law in deleting the addition of Rs.8,11,717/- made by the Assessing Officer on account of value of sixteen shares not included in the revised closing stock list especially when the assessee had failed to explain the reason for not including the same in the revised list of closing stock. 3. That the appellant craves for the permission to add, delete or amend the grounds of appeal before or at the time of hearing of appeal. 2. The brief facts of the case are that assessee declared its income from pens ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... market price, whichever is low. The valuation shown by us is correct and according to holding account submitted herewith. 3. The Assessing Officer then observed that certain new scripts were included in the revised list and the valuation of which was Rs.1,90,442/-. Therefore, he made the addition of the same. 4. The Assessing Officer further observed that shares worth Rs.8,11,717/- as detailed in his order at page 5 & 6 were not included even in the revised list. Therefore, he held that assessee had not disclosed the value of such shares in closing stock and made addition of Rs.8,11,717/-. 5. Aggrieved with the addition, the assessee filed appeal before Ld CIT(A). The Ld CIT(A) after going through the submissions of assessee deleted the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d. which is a statutory body under the law. Therefore, both the additions worked out by the Assessing Officer at Rs.1,90,442/- and Rs.8,11,717/- being incorrect and unwarranted as per the material on record stand deleted. In the result, the appeal is allowed, giving a relief of Rs.10,02,159/- (Rs.1,90,442/- + Rs.8,11,717/-)." 6. Aggrieved, the revenue is in appeal before us. 7. At the outset, the Ld DR submitted that assessee had submitted wrong valuation of closing stock and when she was cornered she manipulated and included scripts discovered by the Assessing Officer and reduced the value of certain scripts to accommodate the value of scripts found by Assessing Officer. He further submitted that there were certain scripts as noted in t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as verifiable from the statement issued by NSDL placed at paper book page 9 to 23. In view of the above, it was submitted that there was no difference and Ld CIT(A) has rightly deleted the addition. 9. We have heard the rival submissions of both the parties and have gone through the material available on record. We find that assessee has been dealing into the business of shares through two share brokers namely M/s Vogue Commercial Co. Ltd. and M/s Divya Portfolio Pvt. Ltd. as is apparent from assessment order as well as from letter dated 26.11.2009 addressed to Assessing Officer by the counsel of assessee placed at paper book page 1. The Ld CIT(A) while giving relief to the assessee has relied upon only copy of Demat A/c with M/.s Vogue Co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of lower valuation has not been examined by Ld CIT(A). The assessee claimed that valuation of closing stock was done on cost price or market price whichever is lower, then how suddenly the valuation in these scripts was brought down in the revised list. This matter needs further examination. 10. In view of the above facts and circumstances, we deem it appropriate to remit back the file to the office of Ld CIT(A) who would require the assessee to file copy of Demat Account of assessee with M/s Divya Portfolio Pvt. Ltd. and we will take into account the valuation of shares if any found laying in the name of assessee with that broker. 11. The Ld CIT(A) will also look into the aspect of reduction of valuation of certain scripts and will exami ..... X X X X Extracts X X X X X X X X Extracts X X X X
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