TMI Blog2011 (12) TMI 521X X X X Extracts X X X X X X X X Extracts X X X X ..... ion of the stock supplied to the Bank did not reflect the accurate or the correct picture. The statement was drawn on the basis of estimation and such estimate is based on the higher side to borrow higher loan. The closing stock reflected in the books maintained for income-tax reflects the correct picture. The Tribunal accepted such version, taking note of various facts noted above including the d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... [B] Whether on the facts of the case and in law and in the circumstances, the Appellate Tribunal was right in law and on facts in holding that the assessee company could reconcile the stock tally in terms of quantity and there was only difference of rates ? [C] Whether on the facts of the case and in law and in the circumstances, the Appellate Tribunal was right in law and on facts in igno ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he revenue authorities, therefore, accepted the valuation of the closing stock as reflected by the assessee himself in his statement before the Bank. Resultantly, additions were made. The Tribunal, however, reversed the orders passed by the revenue authorities and allowed the assessee's appeal by the impugned judgment. At the outset, we may record that in the statement sent to the Bank on 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , the actual stock worth ₹ 49.80 lakhs was found, whereas, for the same month the statement supplied to the Bank reflected the stock of ₹ 94.74 lakhs which clearly shows that the actual stock was not on higher side. The Tribunal also recorded that for the year under consideration, the gross profit of 4.37% is reasonable and fair as against the 3.30% shown in the previous AY. On these f ..... X X X X Extracts X X X X X X X X Extracts X X X X
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