TMI Blog2005 (8) TMI 686X X X X Extracts X X X X X X X X Extracts X X X X ..... the Tribunal laboured under the impression that the quantity and weight of the goods declared to the Bank differed with that shown by the assessee in the trading account. It is thus clear that addition has been made neither on the ground that the assessee had more stock on 31-3-1990 nor on the ground that the assessee had any concealed income which had been invested by it in the closing stock but simply on the ground that the closing stock declared in the trading account after physical verification and value thereof differed with the stock position given to the Bank. While making the addition, the Assessing Authority as well as the Tribunal ignored the important fact that the goods/stock shown in the trading account on 31-3-1990 were as pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lesaler and retail dealer. The goods are imported from outside the State which are subject to check at the entry point at Lakhanpur barrier. The matter relates to assessment year 1990-91 relevant to year ended on 31-3-1990. Return of income in respect of aforesaid assessment year was filed by the appellant with the Assessing Officer showing taxable income of ₹ 67,160. Along with return of income, the appellant submitted copy of its final accounts duly audited by a Chartered Accountant, who had certified that the trading and profit and loss account are in agreement with the books of account. The Assessing Officer took up the case for detailed examination and during the course of assessment proceedings, the assessee produced ledger, cas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The appellant feeling aggrieved of the order of Assessing Officer filed an appeal before the Commissioner of Income-tax (Appeals), Jammu. On re-examination of the material and the issues arising thereon, the Commissioner deleted the addition by taking into consideration the following facts :- (i) Goods sold by the appellant were not manufactured in the State of Jammu and Kashmir and were brought from outside the State and were subject to checking by the Sales Tax Authorities at Lakhanpur Checkpost; (ii) In the statement submitted to the bank, no details of quantity, weight and the rates were given and only the value had been stated; (iii) Since, the stock statement had not been submitted to the bank as on the last day of the accounting year ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lf of the appellant contended that the Tribunal is not justified in law in considering the routine declaration made by the appellant before the Bank for obtaining higher cash credit facility for upholding the addition of ₹ 5,76,736. Further according to learned counsel the Tribunal is also not justified in not taking into consideration the value of closing stock as per books of account as on 31-3-1990 for which final item-wise details and valuation was available and furnished to the Assessing Officer. Learned counsel further submits that admission, if any, made by the appellant to the Bank had been fully explained but the Tribunal proceeded on complete mis-understanding and mis-reading of the document in the shape of declaration made ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ances under which assessee had made declaration to the Bank in regard to the stock in value and weight. 10. It is true that an admission is no doubt a relevant piece of evidence but it is never conclusive. It is all the more so in the matter of an assessment to tax. It is open to the assessee to explain or clarify under what circumstances it was made or to prove that what was stated did not reflect true state of affairs. In CIT v. N. Swamy [2000] 241 ITR 363, the Division Bench of Madras High Court held that :- . . . The assessee s income is to be assessed by the Income-tax Officer on the basis of the material which is required to be considered for the purpose of assessment and ordinarily not on the basis of the statement which the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tory Shop 10,380.00 4. Goods Shop 48,843.00 Total: 8,45,910.00 Less bills payable 2,70,495.00 Balance: 5,75,415.00 Total Stock Value : 5,75,415.00 Drawing Power 3,74,019.75. 12. On reading of the above, we find that in the stock position shown to the Bank the assessee had not disclosed quantity and weight of the stock but had only given particulars of the goods and their value. Whereas the Assessing Authority as well as the Tribunal laboured under the impression that the quantity and weight of the goods declared to the Bank differed with that shown by the assessee in the trading account. It is thus clear that addition has been made neither on the ground that the assessee had more stock on 31-3-1990 nor on the ground that the assessee had an ..... X X X X Extracts X X X X X X X X Extracts X X X X
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