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TMI Blog2018 (11) TMI 1433X X X X Extracts X X X X X X X X Extracts X X X X ..... of stock difference found during survey. 3. The AO has observed that during the course of survey proceedings carried out on 20.09.2005, stock difference between physical stock and books stock of Rs. 83,98,469 was found. However, the assessee has not shown this in return of income nor the explanation offered was found satisfactory , therefore, the AO made an addition of Rs. 83,98,469. 4. Being aggrieved, the assessee filed an appeal before the ld. CIT (A). During the course of appellate proceedings, detailed submissions were made by the assessee, therefore, the CIT (A) has remanded the matter to the AO. The AO vide letter dated 18.01.2010 submitted his remand report on the points raised by the assessee. The CIT (A) noted that the AO has m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on of Rs. 2,57,920 was deleted. 6. With regard to excess stock of 15 Kg of BIB/TP tins valued at Rs. 1,35,975, the CIT (A) observed that the appellant is unable to explain the excess stock of 259 Tins of this item hence, the addition of Rs. 1,35,975 made by the AO on this account was sustained. 7. The next addition of Rs. 4,13,580 was made by the AO on account of Krispi Vanaspati of 20 Kg by 678 tins, the AO discussed this in para 5.2 ( c) of his order. The contention of the assessee in this regard was not found acceptable as the assessee was unable to explain shortage and hence, addition of Rs. 4,13,580 was confirmed. 8. The next addition of Rs. 55,550 made as per para 5.2. (d) of assessment order was not found explained hence, CIT (A) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ains hence, addition was restricted to Rs. 38,700 as against Rs. 1,21,025. 12. The next addition of Rs. 4,17,800 relates to excess stock of 72.049 MT Ground Nut Oil Cake. It was explained that weight of 760.8 MT has been taken the average rate per bags at 80 Kilograms by multiplying with 9510 bags that were physically found. However, CIT (A) observed that physical bags so found were appeared to be tallied with the number of bags appearing in the stock book. However, at the appellant`s stage he is unable to accept that difference arisen due to different weight taken. Therefore, this addition of Rs. 4, 17,800 was confirmed. 13. Similarly vide para 14.2, the CIT (A) deleted the addition of Rs. 68,750 in respect of 1650 tins. 14. The next ad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t has already accounted for production of 28.860 MT of this product in the books of accounts which also been verified by the AO during the course of remand report proceedings, which has been found to be correct. As per remand report of the AO, excess of 16.833 remains to be unexplained. Therefore, out of excess stock of 45.693 MT stands resolved to the extent of 28.860 MT and only balance excess of 16.833 MT remains unexplained. In view of this, the addition was restricted to Rs. 6, 19,454 and relief of Rs. 10,62,066 was allowed. 16. The next addition of Rs. 4,67,266 relates to shortage of 13.990 MT of Degum Soya oil. The CIT (A) observed that the appellant has submitted detailed reconciliation of stock appearing in the books of accounts. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ,16,035 of 15.251 MT was also confirmed. 18. With regard to excess stock of 4713 tins of Rs. 6,79,089 , the CIT (A) noted that the appellant has already accounted for receipt of 4297 tins as per practice being followed as discussed above, hence, addition of Rs. 6,57,041 was deleted and balance addition of Rs. 22,048 was confirmed. 19. Being aggrieved, the Revenue has filed this appeal before the Tribunal. The ld. Sr. D.R. relying on the order of the AO submitted that difference in stock of Rs. 83,98,469 found during the course of survey proceedings. The assessee could not explained the same properly hence, the AO made addition of the same. However, CIT (A) has deleted the addition of Rs. 58,54,592 after obtaining and examining the remand ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... now as the decision of CIT (A) is based on verification carried out by the AO during the course of remand report proceedings. We have gone through the remand report as well as the order of CIT (A) and found that the CIT (A) has confirmed the items of stock around Rs. 25 lakhs, which were not reconciled by the assessee and deleted the addition of those items, which stood reconciled and stand verified by the AO. In view of these facts and circumstances, we are of the considered opinion that the CIT (A) has passed a judicious and clear order based on facts, which were verified by the AO; therefore, we do not have any reason to interfere with the same. Therefore, same is upheld. Ex-consequenti, this grounds of appeal of revenue is therefore, di ..... X X X X Extracts X X X X X X X X Extracts X X X X
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