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TMI Blog2018 (6) TMI 1105X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee in the present case is a partnership firm which is engaged in the business of trading of building materials. The return of income for the year under consideration was filed by it on 28.03.2012 declaring a total income at Nil. In the assessment originally completed under section 143(3) vide an order dated 13.12.2012, the total income of the assessee was determined by the AO at Rs. 1,21,390/- after making an addition of Rs. 1,21,390/- on account of discrepancy found in the stock statement. The said assessment was subsequently set aside by the Ld. CIT vide its order under section 263 with the direction to the AO to complete the same afresh after making enquiry on the issue of difference in valuation of closing stock as reflected in th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... shable from the case of the appellant. In the case of the appellant a clear cut discrepancy in the quantity of stock has been detected which remains unexplained. I will therefore place reliance on Kolkata ITAT's Order in the case of M/s. Estee Export Pvt. Vs ITO, ITA No. 424/Kol/2012 for A.Y. 2006-07 dated 09.08.2012. In this case also difference in stock as per books of accounts and stock statements submitted to bank was noticed. Investigation revealed that while appellant was in the possession of 213,138 Metric tons of goods having a value of Rs. 46,27,535/-, in books of accounts stock to the extent of only 180.927 metric tons valued at Rs. 43,67,515/- was reflected. Therefore, stock to the extent of Rs. 32.211 metric tons of goods valuin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aid to be followed by business houses of declaring larger stocks to the banks for the purpose of getting higher loans or overdraft facilities has neither been shown to exist nor recognised in commercial circles or by courts and even assuming that such a practise exists, the Tribunal is not expected to take judicial notice of such sub standard morality on behalf of the assessee so as to enable them to go back on their own sworn statements given to the banks as to the stocks held or hypothecated by them in the banks. 5.3. In view of a clear cut judgment of the Jurisdictional Tribunal as mentioned above in cases where clear cut quantity stock discrepancy is noticed and which cannot be explained by the appellant, the normal conclusion should ..... X X X X Extracts X X X X X X X X Extracts X X X X
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