TMI Blog2019 (12) TMI 350X X X X Extracts X X X X X X X X Extracts X X X X ..... tock because MRP is generally 20 to 25% higher than the actual purchase price charged by the manufacturer/wholesaler. The assessee has not disputed quantum of material/stock inventorised by the survey team - valuation of stock should have been done by considering the said three factums as noted above, therefore, direct the AO to allow 20% rebate on the value adopted by the survey team for inventorised/taking valuation of stock. AO is directed to estimate the value of stock accordingly and to recalculate/estimate the excess Stock, if any, found during the course of survey. Addition on the basis of third party statement - HELD THAT:- AO has made addition without any basis and ld. CIT(A) while confirming the same noted that the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , Muzaffarpur, dated 28.11.2018 for the assessment year 2009-2010. 2. In this appeal, the assessee has raised six grounds of appeal out of which ground Nos.1, 5 6 are general in nature. Now, the grounds remained to be decided as ground Nos.2, 3 4, which reads as under :- 2. For that in the facts and circumstances of the case, the CITA is not justified in confirming the addition of ₹ 6,27,496/- made by the Assessing Officer on estimate on account of alleged excess stock. There was no excess stock. The stock inventorized / taken are not correct inspite of objection having been raised during the course of survey. It was not possible for taking such huge stock with limited manpower. The entire sales and purchases ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed during the course of survey as it was not practically possible for taking such huge stock with limited manpower at that point of time. Ld. AR submitted that after verification of entire sales and purchases nothing contrary has been found or detected. Ld. AR further submitted that books of accounts of the assessee have not been rejected and no rebate out of stock inventorised have been considered/allowed on account of damages, discolour and outdated materials which the assessee is entitled at least 20-25% rebate on the valuation of stock done during the survey. Ld. AR also pointed out that no goods have been sold on the price quoted by the assessee and the survey team has taken maximum retail price(MRP) printed on the items without consid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ock, no rebate has been allowed to the assessee on account of damaged, discolour and outdated material for which the assessee is entitled at least 20-25% rebate. In the totality of facts and circumstances of the case, as noted above, I am of the view that for valuation of stock in hand the general rule adopted is cost price or fair market value whichever is less whereas in the present case the survey team has valued the stock of assessee by taking MRP without considering some relevant factors viz., (i) sales price includes GP approximately 8 to 10%; (ii) the stock inventorised includes old and absolute stock also and rebate onaccount of damaged, discolour and outdated materials should be allowed and (iii) MRP printed on the items cannot be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ve submissions, I am of the view that the Assessing Officer has made addition without any basis and ld. CIT(A) while confirming the same noted that the assessee is continuously changing its stand about the actual date of payment, which brings his submission under serious suspicion. The Assessing Officer has also asked the assessee for the payments made by the assessee, however, the assessee could not reply the same, therefore, the Assessing Officer observed that the assessee has made the said expenditure out of books and added the same to the total income of the assessee. From the above observations of the both the authorities below, I do not find any good reason to interfere in the findings recorded by the CIT(A) and I uphold the same and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed by the Hon'ble Supreme Court on merits vide order dated 01.08.2000 by saying that there is no merit in the appeal. 24. Learned counsel for the revenue could not dispute this legal position. Therefore, so far as question of law involved in this appeal that whether the interest could have been levied against the assessed income of the assessee under Sections 234A and 234B is concerned, in view of the Full Bench judgment of Ranchi Bench of Patna High Court delivered in the case of Smt. Tej. Kumari, the revenue can levy the interest only on the total income declared in the returns and not on the income assessed and determined by the AO to that extent. The orders passed by the authorities below are accordingly modified and int ..... X X X X Extracts X X X X X X X X Extracts X X X X
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