TMI Blog2019 (8) TMI 292X X X X Extracts X X X X X X X X Extracts X X X X ..... with regard to discrepancy in the stock. It may also be noted here that in the preceding AY 2013-14 the similar addition was deleted by the Ld. CIT(A) following the judgment of the Hon ble Punjab Haryana High Court in the case of Sidhu Rice General Mills [ 2004 (7) TMI 12 - PUNJAB AND HARYANA HIGH COURT] . Therefore,CIT(A) should not have taken a contrary view in assessment year under appeal. The decisions relied upon by Ld. Counsel for assessee squarely applied to the facts and circumstances of the case. The issue is, therefore, covered by these decisions in favour of the assessee. It is well settled law that Revenue authorities are bound to follow the rule of consistency. Thus the addition is wholly unjustified - Decided in favour of assessee. Addition on account of low household withdrawal - HELD THAT:- It is not in dispute that family of the assessee consists of self and his wife only. The assessee resides in his own house and has sufficient ancestral agricultural land. The assessee has agricultural income also. The AO has not brought any evidence on record to justify the estimate of household expenses in a sum of ₹ 20,000/- per month. The AO did not doubt t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion of the assessee and considering the GP rate made the addition of ₹ 25,66,790/- on account of unexplained investment in stock. 5. The assessee challenged the addition before Ld. CIT(A) and it was submitted that assessee was having bank facility from PNB, Narnaul and for getting higher credit, it is a common practice to furnish the stock statement to the bank by estimate and not the actual stock. The assessee did the same and furnished stock statement as on 28.02.2014 on estimate basis to the Bank. Figures furnished to the Bank were on estimate basis and not on actual basis. Further, the Bank officials had also not verified the physical stock at the premises of the assessee nor value the stock as on 28.02.2014. The stock was not under lock and key of the Bank. The assessee was dealing in Government control items like fertilizers and chemicals and some are subjected to physical verification by the Agriculture Department. The stock statement submitted to the Bank on 31.03.2014 shows closing stock at ₹ 1,88,17,001/- which figure tally with the stock statement as per the books of account of the assessee. The stock value as per the statement furnished to t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee s income is to be assessed by the Income tax Officer on the basis of the material which is required to be considered for the purpose of assessment and ordinarily not on the basis of the statement which the assessee may have given to a third party unless there is material to corroborate that statement of the assessee given to a third party, even if it be a bank. The mere fact that the assessee had made such a statement by itself cannot be treated as having resulted in an irrebuttable presumption against the assessee. The burden of showing that the assessee had undisclosed income is on the Revenue. That burden cannot be said to be discharged by merely referring to the statement given by the assessee to a third party in connection with a transaction which was not directly related to the assessment and making that the sole foundation for a finding that the assessee had deliberately suppressed his income. 5. That the burden is on the Revenue to prove that the income sought to be taxed is within the taxing provisions and there was in fact income, are propositions which are well settled by the Supreme Court in the case of Parimisetti Seetharamamma vs. CIT [1965] ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... difference between closing stock declared in the trading account and the stock shown in the statement submitted by the assessee to the bank as the stock position shown to the bank was on estimate basis and inflated value was shown to avail more credit from bank. He has, therefore, submitted that addition is wholly unjustified. 10. On the other hand, Ld. DR relied upon the orders of the authorities below and submitted that certificate of the bank (PB-11) is additional document which was not filed before the authorities below. 11. I have considered the rival submissions. It is not in dispute that assessee maintained books of accounts which are duly audited. The AO has not pointed out any specific defect in maintenance of the books of account by the assessee. The books of accounts by the assessee have not been rejected by the AO. It is also admitted fact that the turnover and GP ratio is better in assessment year under appeal as compared to preceding assessment year. The AO made the addition because the stock statement submitted to the bank on 28.02.2014 shows excess stock in this statement. The authorities below have heavily relied ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ddition is wholly unjustified. I, accordingly, set aside the orders of authorities below and delete the entire addition. 12. Ground no. 1 of appeal of assessee is allowed. 13. On ground no. 2, assessee challenged the addition of ₹ 55,000/- on account of low household withdrawal. During the year, under consideration assessee had withdrawn a sum of ₹ 1,85,000/- towards household expenses. The family of the assessee consists of himself and wife only. Both the sons are earning separately and residing in Pune and Chandigarh. The family resides in own house for which no rent is to be paid. The family owns ancestral agricultural land of about 10 acres which belongs to HUF and income from agriculture was also use for household expenses. It was, therefore, submitted that the household shown by assessee at ₹ 1,85,000/- in addition to agricultural income is more than sufficient considering size of the family of the assessee. The AO, however, estimated the household expenses of assessee to ₹ 20,000/- p.m. considering status of the assessee and estimated household expenses at ₹ 2,40,000/-. The difference of ₹ ..... X X X X Extracts X X X X X X X X Extracts X X X X
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