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TMI Blog2015 (6) TMI 834X X X X Extracts X X X X X X X X Extracts X X X X ..... d Commissioner of Income-tax (Appeals) has erred in confirming the action of the Assessing Officer in making addition of Rs. 2,50,289/- on account of difference in creditors account. 2. Without prejudice to ground no.1, on the facts and circumstances of the case as well as law on the subject, the learned Commissioner of Income-tax (Appeals) should have given direction to exclude the amount of Rs. 2,50,289/- from the total income for assessment year 2008-09 on account of difference in creditors account. 3. On the facts and circumstances of the case as well as law on the subject, the learned Commissioner of Income-tax (Appeals) has erred in confirming the action of the Assessing Officer by disallowing depreciation of Rs. 1,679/-. 4. On the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unting to Rs. 1,679/-. Further, the AO made addition on account of suppression of closing stock amounting to Rs. 4,40,747/-. Hence, the AO assessed income at Rs. 7,53,453/- against the disclosed income of Rs. 9,032/-. Against the assessment order, the assessee filed an appeal before the ld.CIT(A), but after considering the submissions and perusing the record, dismissed the appeal. Now, the assessee is further in appeal before us. 3. Ground Nos.1 & 2 are related to the confirmation of Rs. 2,50,289/- on account of difference in creditors account. The ld.counsel for the assessee submitted that the difference between balance in the books of account of the assessee and the confirmation of the various creditors. He submitted that there is no dis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ditors and ledger account of assessee. The appellant has not been able to meet the points raised by A.O. for making addition. There is considerable force in the arguments of the A.O. that discounts are in the nature of income for financial year relevant to A.Y. 2007-08. Hence, they are to be taxed in A.Y. 2007-08. It does not help the case of the assessee that he has offered this income for taxation in a subsequent year. The A.O.'s action in bringing the difference in closing balance of ledger account of certain creditors and ledger account of assessee totaling to Rs. 2,50,289/- is fully justified. The A.O. has added the amount to assessee's income after considering all the arguments put forward before him and also after granting reasonable ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... plete dayto- day maintenance of stock register along with all supporting evidences. All books of accounts, basic vouchers, stock register before the Ld.A.O. and it is also true that no defects in the books of accounts, vouchers, etc. found during the assessment proceedings. He submitted that alternatively the addition made in the closing stock should be treated as opening stock of the next year. 8. On the contrary, ld.Sr.DR supported the orders of the authorities below and submitted that the AO in para-7 of his order has given a finding that the assessee-company had a closing stock of 2,17,732.50 mts of grey fabric with its at the close of 31.3.2007. From the bills of purchase of grey fabric produced by the assessee-company, it was seen th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gone through the orders of the authorities below. The contention of the assessee is that the AO has not doubted the accounts of the assessee, he submitted that all relevant material were placed before the AO. Even if it is assumed that there is a difference in stock in that eventuality, the closing stock of this year would become closing stock of next year. We find that the AO has given a categorical finding as under:- "..... that the assessee company had a closing stock of 2,17,732.50 mts of grey fabric with its at the close of 31.03.2007. From the bills of purchase of grey fabric produced by the assessee company, it was seen that the average rate of purchase of grey fabric at the end of the year was Rs. 11.30/mtr. It was also seen that t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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