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TMI Blog2014 (11) TMI 1050X X X X Extracts X X X X X X X X Extracts X X X X ..... tted that grounds are not pressed at this point of time. That leaves us with ground Nos. 2 to 6 on the issue of addition made by A.O. as unexplained investment of Rs. 16,00,060 which was partly deleted by Ld. CIT(A). 2. Briefly stated, there were search and seizure operations in the group and assessee's business premises at Bangalore was covered under 133A. The stock available in the Bangalore premises on 26.07.2008 was quantified and excess stock of granite at 2758.720 sq.mts was found. It was explained by the person in-charge Mr. B. David, Director and General Manager that the difference stock arose as they were accounting the net non-defective area in the stock register whereas, the stock was taken of the complete area including the rej ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e in measurements, made on edge to edge basis vis-à-vis the net area worked out, where quantification would be made without the above mentioned defects. This fact was mentioned by the person concerned, at the time of survey. Further, the stocks in books are of various shapes/kinds, with few slabs shown as Finished goods, and others as unfinished slabs as well as tiles. There is no classification of goods on these lines in the valuation made by the A.O. as it appear from the stock statement prepared in survey. Considering all these factors, an allowance of 10% may be allowed on total stocks inventorised for the purpose of defective area and excess stocks may be computed and valued accordingly. On these lines, the grounds raised may be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion as arising from the order, we do not see any merit in making addition by A.O. or partly being confirmed by Ld. CIT(A). First of all, the stock taken was done in the middle of the year and assessee has every right to reconcile the stocks but no such opportunity was given. Further, when assessee explained in the statement that accounting in the books of accounts is about net non-defective area, the officers of survey could have examined this contention and establish whether statement of assessee is correct or not, given in the course of survey. Nothing was done except quantifying the stock. As seen from the order, Ld. CIT(A) accepts that there could be adjustments for the defective pieces/slabs. However, in his wisdom, he restricted the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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