TMI Blog2020 (8) TMI 472X X X X Extracts X X X X X X X X Extracts X X X X ..... count under the head Plant and Machinery as the same were capitalised. Except for this, there is no evidence brought on record to suggest that the assessee has made investment in its stocks outside the books of account. Considering the totality of the facts, we are of the considered view that the provisions of section 69A of the Act do not have any application on the facts of the case in hand. We, accordingly, direct the Assessing Officer to delete the addition - Decided in favour of assessee. - ITA No. 4653/DEL/2016 - - - Dated:- 19-8-2020 - Shri N.K. Billaiya, Accountant Member, And Ms. Suchitra Kamble, Judicial Member For the Assessee : Shri S. Krishnan Adv For the Revenue : Ms. Rakhi Vimal, Sr DR ORDER PER ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rrect except for stock and spares. 6. Vide order sheet entry dated 21.01.2014, the assessee was asked to explain the variation in stock of stock and spares, to which the assessee explained that the value of stock of stores and spares given to the bank is on estimated basis and once again explained that all items of machinery, repair and maintenance, rolls, dyes etc., which are otherwise included in the plant and machinery for balance sheet purposes. 7. Explanation of the assessee did not find any favour with the Assessing Officer who was of the firm belief that the assessee has not disclosed its stock as on 31.03.2011 correctly. 8. Drawing support from the decision of the Hon'ble Madras High Court in the case of Coimbatore Spin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to reconcile the discrepancy and the assessee has grossly failed in doing the same. 13. We have given thoughtful consideration to the orders of the authorities below. At the very outset, we have to state that it is a usual practice of the borrowers to furnish inflated stock statement to the bank to cover up their cash credit limit which is invariably against the hypothecation of the stock. However, having stated that, all that we have to look upon is as to whether the books of account reflect true statement of affairs. The undisputed fact is that the Assessing Officer has not pointed out any defect in the books of account. The entire assessment is based upon the difference in the books stock and value of stock given to the Punjab Nationa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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