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2016 (7) TMI 681 - GUJARAT HIGH COURT

2016 (7) TMI 681 - GUJARAT HIGH COURT - TMI - 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 - Held that:- As in the case of Riddhi Steel and Tubes (2013 (10) TMI 291 - GUJARAT HIGH COURT) 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 ther .....

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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 the block period 01/04/1994 to 08/08/2000. 2. While admitting this appeal, following question was pose .....

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y 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 177 (Gujarat) (SC) wherein this Court has held as under: 9. The entire emphasis of the Revenue is that the decisions of this Court only pertain to the value of the stock and .....

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osing 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 det .....

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ock 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 th .....

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margin requirements of the bank purely on inflated estimate basis, when the stock statement had reflected inflated 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 em .....

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.2 is concerned, the assessee has proved on record that the group 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 as .....

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