TMI Blog2021 (2) TMI 222X X X X Extracts X X X X X X X X Extracts X X X X ..... s as on 22.3.2012 and 31.3.2012 - HELD THAT:- Nowhere, in the assessment order, it is reflected that the assessee has furnished the above documents before the Assessing Officer. It is not disputed that the assessee has agreed before the survey team that there was excess stock of 17,18,792/-, and advance tax was paid by the assessee. The contention of the assessee that subsequently the stock was found tallied with its books of account is an afterthought and no evidence in this regard was produced before the lower authorities immediately after the survey. The survey was done in the presence of the assessee and hence, it cannot be alleged that the assessee was forced to sign the recorded statement. Find no infirmity in the order of the ld CIT( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g purchase and sale registers were produced before the assessing officer and after duly verified the assessment was completed and income was determined at ₹ 7,10,420.00 only and excess amount of advance tax paid was refundable to the appellant. So under such circumstances further addition which is based on difference of opinion is illegal and against the principles of natural justice. 5. That the addition as has been made by the learned I.T.O now basing on the statement recorded from one of the partner of the appellant firm on the date of survey is not correct because the said statement was also with the possession of the learned I.T.O at the time of original assessment made earlier U/s 143(3) of the I.T.Act 1961 which were cons ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essing Officer made the assessment u/s.143(3)/263 of the Act on 14.12.2017 determining the total income at ₹ 24,29,210/-, inter alia, making addition of ₹ 17,18,792/- on account of explained closing stock, which was confirmed in first appeal. 3. Ld A.R. of the assessee submitted that regular books of account were produced before the Assessing Officer at the time of original assessment made under section 143(3) of the Act and explanations were furnished before the AO. Hence, it was his submission that the assessment in pursuance to order under section 263 of the Act is bad in law and deserves to be annulled. 4. Ld A.R. of the assessee submitted that the assessee makes the valuation of closing stock on the basis of purchase ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of unexplained closing stock of ₹ 17,18,792/- found on the date of survey on 23.12.2012 on the basis of discrepancy of the actual stock and the stock as recorded in the books of account of the assessee. To adjudicate this issue, it has to be found out that whether at the time of survey, there was excess stock or not. It is the contention of the assessee that the assessee makes the valuation of closing stock on the basis of purchase value of the materials and the department has determined the value of closing stock on the basis of sale value. The ld A.R. of the assessee has submitted copies of purchase and sale statement for the period from 1.4.2011 to 22.3.2012 and 1.4.2011 to 31.3.2012 and closing stock statements as on 22.3.2012 an ..... X X X X Extracts X X X X X X X X Extracts X X X X
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