2016 (7) TMI 681

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..... case the Income Tax Appellate 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?" 3. Learned Counsel for the assessee has mainly contended that the issue raised in this appeal is identical to one which has been decided by this Court in Tax Appeal No.1371 of 2006 by an order dated 12/12/2014 and placed reliance upon paragraph no.4 to 7 which reads as under: "4. The issue involved in the present Tax Appeal is now not res integra in view of the decision of this Court in the case of Commissioner of Income tax, Ahmedabad vs. Riddhi Steel and Tubes (P) Ltd reported in [2013] 40 taxmann.com .....

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..... s and for the past eight years, the assessee had been following continuously/consistently the method of accounting, as provided under section 145 of the Act, valuing the closing stock and inventory, as provided under section 145 A of the Act. The assessee was also subjected to Excise and VAT and the books of account were found genuine and no discrepancies were found even by the Excise Audit report for the period January 2009 to December 2009 which was carried out by the Excise Revenue Audit Team, wherein the Excise Department, after a detailed scrutiny of the books of account, stock register, excise records, accepted the books of account and other records maintained by the assessee to be true, correct; except finding few discrepancies in so .....

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..... up of companies were maintaining stock at a common place. The stock of the other group concerns were given in the Bank statement. This fact was also brought to the notice of the Bank. Similarly, a letter given by the Bank Manager to the Director of the assessee was on record, which is indicative of the fact that the assessee has informed the Bank regarding common stock position at one place of the sister concerns. In this way, the assessee has duly discharged the onus of explaining the excess stock and the CIT(A) was justified in deleting the addition. 11. In our opinion, no illegality has been committed by the Appellate Tribunal by allowing the deletion. Hence, question no.2 is answered in favour of the assessee and against the Revenue. .....

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