TMI Blog2016 (7) TMI 681X X X X Extracts X X X X X X X X Extracts X X X X ..... firmative i.e. against the appellant revenue and in favour of the assessee. We hold that the Tribunal was right in law in deleting the addition made on account of difference in stock statement as furnished before the bank as compared to shown in books of account for availing higher credit facility. - Decided in favour of the assessee - TAX APPEAL NO. 1 of 2007 - - - Dated:- 13-7-2016 - MR. KS JHAVERI AND MR. G.R.UDHWANI, JJ. FOR THE APPELLANT : MR RAXIT DHOLAKIYA, ADVOCATE FOR THE OPPONENT : MRS SWATI SOPARKAR, ADVOCATE ORAL JUDGMENT (PER : HONOURABLE MR.JUSTICE KS JHAVERI) By way of this appeal, the appellant Department has challenged the order dated 31/03/2006 passed by the ITAT in I.T. (SS) NO.60/Rjt/03 for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rch 2009. Although much reliance was placed by the Assessing Officer and CIT [A] on the godown visit by the Bank Manager after closing of the year ie., on 25th April 2009, however, no physical verification and counting of the stock took place during such visit and even otherwise, the Bank Managers report indicates that 3000 tonnes of Coil was already included in the stock of the month of March 2009 and because of such inclusion, the stock position of March 2009 has shown the increase in quantity. It also found that the stock register was maintained by the assessee giving complete quantity details; including month-wise details of raw materials, finished goods and semi-finished goods. 9.1 Again, the Court cannot be oblivious of the fact ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lated value of the stock, in wake of otherwise satisfactory explanation, both - for the purpose of value as well as quantity, we find no reason to interfere with the order of the Tribunal. 10. As a parting note, it needs to be mentioned that the Tribunal also made an extensive exercise of calling for the financial ratios of seven years and of the current year under appeal and also held empathetically that after giving effect to the additions made by the Assessing Officer, the financial statement would get completely distorted; if such inclusion/ addition as made by the Assessing Officer is allowed to continue. 5. Similarly, another identical issue had come up before this Court and this Court vide judgement and order dated 19.11. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the same as in the case of Riddhi Steel and Tubes (Supra) it is held by this Court that only on account of inflated statements furnished to the banking authorities for the purpose of availing of larger credit facilities, no addition can be made if there appears to be a difference between the stock shown in the books of account and the statement furnished to the banking authorities. Accordingly, the question is answered in the affirmative i.e. against the appellant revenue and in favour of the assessee. We hold that the Tribunal was right in law in deleting the addition made on account of difference in stock statement as furnished before the bank as compared to shown in books of account for availing higher credit facility. 4. In view ..... X X X X Extracts X X X X X X X X Extracts X X X X
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