TMI Blog2006 (10) TMI 124X X X X Extracts X X X X X X X X Extracts X X X X ..... erdraft purposes to the bank, there were no detailed items of stocks in support of the declared value. It was also pointed out that there was no physical verification of stock, either by the assessee or the bank at the time of furnishing the stock statement. The Tribunal as well as the CIT(A) have given a concurrent finding that the assessee declared closing stock for assessment purpose which is based on actual physical verification. There are enough materials available on record and the conclusion reached by the Tribunal is based on valid materials and evidence. In view of the same, there is no basis to treat the difference in value as the assessee's under-valuation of stock or undisclosed income. The Tribunal also rightly followed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng that the assessee can adopt one stock value for the bank purpose and other for the Income-tax purpose ? 2. The brief facts leading to the above questions of law are as under : 3. The assessee is a private limited company. The assessee derives income from manufacture of tape back up units for personal computers and computers. The relevant assessment year 1991-92 and the corresponding accounting year ended on March 31, 1991. The assessee filed return of income on December 19, 1991, disclosing a total income of Rs. 11,62,170. Later the return was processed under section 143(1)(a) of the Income-tax Act (hereinafter referred to as the Act ) determining the total income at Rs. 16,29,408. Subsequently, notice under section 143(2) of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ification. Hence, the estimated value of the stock given to the bank cannot be taken as the correct value of stock. 6. Heard the counsel. Any addition on account of difference in stock can be made only on adequate materials, but not arbitrarily. Admittedly, there was a difference between the value of closing stock declared to the bank and to the Income-tax authorities. There is no dispute that the assessee was maintaining books of account on day-to-day production. The assessee, in the present case, has taken the actual physical stock for the purpose of declaring closing stock to the Income-tax authorities. Further the purchases and sales were supported by vouchers and the Assessing Officer had not pointed out any suppression of sales or ..... X X X X Extracts X X X X X X X X Extracts X X X X
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