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TMI Blog2018 (2) TMI 1598X X X X Extracts X X X X X X X X Extracts X X X X ..... substantial questions of law: "(A) Whether on the facts and circumstances the Appellate Tribunal is justified in holding that there was no dispute in correctness and genuineness of the books of accounts, whereas the AO in his assessment order has invoked the provisions of section 145 of the Act treating the books of accounts as defective and incorrect? (B) Whether on the facts and circumstances the Appellate Tribunal is justified in holding that the assessee has inflated the stock position for availing maximum cash credit facilities, whereas during the assessment proceedings, the assessee has himself stated that the stock position has been valued by the visiting bank officials?" 2. The assessment year is 2008-09 and the relevant acco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ior advocate, learned counsel for the appellant submitted that the decision of the Tribunal is erroneous inasmuch as the Tribunal has proceeded on the general perception that inflating the value of the stock is only for availing credit from the bank and has completely ignored the assessee's own version that it had given stock position as on 15.4.2008, instead of 31.3.2008. It was submitted that the Tribunal has also overlooked the facts mentioned by the assessee, namely, that its stock position was physically verified by the bank on personal visit of the godown on 31.3.2008. It was submitted that therefore, it is abundantly clear that the Tribunal proceeded on assumptions and surmises. It was, accordingly, urged that the appeal does give ri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7/- and accordingly upheld the addition of Rs. 11,38,373/- and deleted the remaining addition. 7. The Tribunal, in the impugned order, has observed that the valuation of the stock supplied to the bank does not reflect the accurate or the correct picture as the value adopted for the stock statement supplied to the bank is at market price, whereas the value adopted for showing the closing stock in the books of accounts is always at cost price or market price, whichever is lower. The Tribunal noted that there was no dispute that the addition had been made only on the ground of inflated statements furnished to the bank authorities for the purpose of availing larger credit facilities and was of the opinion that no addition can be made only on s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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