Subscription   Feedback   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Articles Highlights TMI Notes SMS News Newsletters Calendar Imp. Links Database Experts Contact us More....
Extracts
Home List
← Previous Next →

Commissioner of Income Tax Versus Shaik Usman Ali

2016 (2) TMI 384 - MADRAS HIGH COURT

Addition made towards difference in closing stock - assessment by Sales Tax Authorities - whether the stock statement submitted to the Sales Tax authorities was erroneous? - Held that:- As decided in The Commissioner of Income Tax Versus Smt. Sakuntala Devi Khetan [2013 (3) TMI 270 - MADRAS HIGH COURT] it has been held that the Assessing Officer has to adopt the figures and turn over finally assessed by the Sales Tax Authorities. This decision is binding upon the Revenue. Therefore, the contenti .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

.Shah Sanitary Stores, Chennai. For the impugned Assessment Year (2002-2003), the Assessing Officer completed the 'scrutinity' assessment, by order dated 30.12.2009. During the course of scrutinity, the Assessing Officer found that the declared stock before the Bank (for availing cash credit facility) was ₹ 7,23,98,153/- and that it did not match with the stock enlisted in the books maintained by the Assessee. There was a difference to the extent of ₹ 4,81,53,843/-. This resu .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

value, but, relied upon the fact that the assessee himself had declared stock of ₹ 7,23,98,153/- and held that the difference has to be added in the assessee's total income. 3. The Assessee once again filed an appeal before the Commissioner of Income Tax(Appeals) and the CIT(A) allowed the appeal and ordered deletion of the above addition. Aggrieved over the same, the Revenue filed an appeal before the Income Tax Appellate Tribunal. The Tribunal held that once the declaration of stock .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ioner of Income Tax (Appeals) directing the Assessing Officer to delete the addition made towards difference in closing stock? (ii) Whether under the facts and circumstances of the case, the Tribunal was correct in holding that the stock valuation accepted by the Sales Tax Authority is binding on the income tax authorities? 5. It is the case of the revenue that the stock statement furnished by the assessee to the Bank, at the time of availing loan facility, must be accepted as correct and that t .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

t was held that, the fact that profit appeared too low or that no stock register was maintained would not be sufficient material to reject the books of account; these would only be material for provoking further enquiry; the Income Tax Officer must discover other materials and evidence to come to such conclusion. 5.2. When the books of account is good enough for provoking further enquiry and not liable to be rejected on moral views, is there any other way by which the authenticity of the books o .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ooks of accounts or stock records of the assessee. It is also not the case that bank authorities have verified the assessee's stock in relation to the position as at the close of the year. Under such circumstances, as expounded by the Hon'ble jurisdictional High Court in the case of CIT vs. N.Swamy 241 ITR 363, the burden was upon Revenue to prove that the stock submitted to the Revenue authorities was erroneous. This burden could not be discharged by merely referring to the statement of .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

t the stock statement submitted to the Sales Tax authorities was erroneous. There was no proof available for revenue to show that such statement to Sales Tax Authorities was wrong. Under such circumstances, the assessee contends that the inflated reporting of stock to the Bank should not be accepted, since the inflated statement was for the purpose of obtaining more cash credit facility. 5.5. Which out of the two authorities, whether the Bank Authorities or the Sales Tax Authorities would have b .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 

what is new what is new
  ↓     bird's eye view     ↓  


|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version