TMI Blog2015 (3) TMI 1306X X X X Extracts X X X X X X X X Extracts X X X X ..... bank was on estimate basis but the stock shown in the assessment proceedings was based on actual physical verification. As such, there was no reason to reject the books of account of the assessee and no addition is called for solely on account of the difference in value of the stock submitted to the bank and the value of the stock shown in the accounts presented for assessment - Decided against revenue. - ITA No.271/Vizag/2012, Cross Objection No.22/Vizag/2012 - - - Dated:- 3-3-2015 - SHRI J. SUDHAKAR REDDY, ACCOUNTANT MEMBER AND SHRI SAKTIJIT DEY, JUDICIAL MEMBER For The Revenue : Mr. Rajeev K. Singh For The Assessee : Mr. GVN. Hari ORDER PER J. SUDHAKAR REDDY, A.M. This appeal is filed by the Revenue against t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd to be urged at the time of hearing. 2. The facts are brought out at para-2 of the Ld. CIT(A) order which is extracted for ready reference : Brief facts of the case are that the assessee carrying on business in handloom cloth. A survey under section 133A was conducted in this case on 10.08.2007 and some discrepancies were noticed by the department. The assessee filed his return of income for the assessment year 2007-08 on 2.11.2007 declaring total income at ₹ 2,05,420. The return was processed under section 143(1) and subsequently, a notice u/s.148 was issued as it was noticed that in this case for the assessment year 2008-09, a sum of ₹ 85,973 pertaining to the financial year 2006-07 relevant to the assessment year 2007 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pleaded that the matter should be remanded back to the file of Assessing Officer, for verifying the reconciliation statements filed by the assessee and thereafter, dispose of the case afresh, in accordance with the law. Alternatively, he submitted that the issue may be set aside to the file of Ld. CIT(A) who should be directed to call for the remand report and then adjudicate the matter afresh. 5. The Learned Counsel for the assessee Mr. GVN. Hari on the other hand has opposed the contention of the learned D.R. and submitted that during the course of survey, no discrepancies of quantitative details for stock whatsoever was found. He further submitted that the Assessing Officer committed a mistake in assuming that the Ld. CIT(A), while di ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... difference in the stock statement furnished to the bank and the one shown in the books of account. In this case, during survey, nothing is found or brought on record to show that on physical verification, the stock found was in excess of the stock recorded in the books of account. It was explained by the assessee that the stock statement furnished to the bank was on estimate basis but the stock shown in the assessment proceedings was based on actual physical verification. As such, there was no reason to reject the books of account of the assessee and no addition is called for solely on account of the difference in value of the stock submitted to the bank and the value of the stock shown in the accounts presented for assessment. 8. Re ..... X X X X Extracts X X X X X X X X Extracts X X X X
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