TMI Blog2022 (2) TMI 1037X X X X Extracts X X X X X X X X Extracts X X X X ..... e of this Court the decision rendered by this Court in SK. USMAN ALI [ 2015 (3) TMI 891 - MADRAS HIGH COURT] relating to the same assessee (for the Assessment year 2001-2002), whereunder, relying upon the decision reported in Sakuntala Devi, Khetan [ 2013 (3) TMI 270 - MADRAS HIGH COURT] it has been held that the Assessing Officer has to adopt the figures and turn over finally assessed by the Sales Tax Authorities. This decision is binding upon the Revenue. Therefore, the contention of the Revenue that it has powers to tinker with the stock estimated by the Sales Tax Authorities cannot be accepted. Therefore, the appeal filed by the Revenue fails - T.C.A.Nos.103 and 104 of 2014 And MP.No.1 of 2014 - - - Dated:- 14-2-2022 - Hon'ble ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hed to the bank and also reopened the earlier and subsequent assessments. Ultimately, the assessing officer completed the assessment by making additions as unexplained investment in stock. Challenging the same, the assessing officer preferred appeals before the CIT(A), who by order dated 02.03.2011, allowed the appeals. Aggrieved by the same, the Revenue preferred appeals before the Tribunal, which dismissed the same, following the earlier order in respect of the assessee's own case in ITA No.2013/Mds/2005 for the assessment year 2001-02, relating to addition on the difference between stock as per books and stock furnished to the bank. Therefore, the present appeals by the Revenue. 4.The learned counsel for the appellant/Revenue fair ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the consistent view of this Court as could be found from the above decisions, this Court is of the considered view that the contention of the Department has to fail. Accordingly, the substantial question of law is answered in favour of the assessee and against the Revenue. 10. In the result, the appeal fails and the same is dismissed. However, in the circumstances of the case, there shall be no order as to costs. 5.The learned counsel for the appellant / Revenue further submitted that the aforesaid judgment was followed by this court in TCA No.910 of 2014 in respect of the assessee's own case relating to the assessment year 2002-03 and by judgment dated 18.01.2016, the appeal was dismissed against the Revenue and in favour of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... thorities came to be considered in the decision reported in Shri Mitesh Dugar vs. Income Tax Officer and the relevant observation therein reads as under: Upon a careful consideration of the issue, we find that the authorities below have not detected any mistake or omission in the books of accounts or stock records of the assessee. It is also not the case that bank authorities have verified the assessee's stock in relation to the position as at the close of the year. Under such circumstances, as expounded by the Hon'ble jurisdictional High Court in the case of CIT vs. N.Swamy 241 ITR 363, the burden was upon Revenue to prove that the stock submitted to the Revenue authorities was erroneous. This burden could not be discharged by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt of tax, would have been more professional in assessing the stock than the Bank authorities, who are merely interested in the overall value of the asset of the assessee only to ensure that there is enough security for the loan. On this score also, the stock value as accepted by the Sales Tax authorities should be given more credence. If one branch of the officials collecting tax do not accept the valuation by the other branch of the officials collecting tax, then there is no sanctity to the statutory functioning of which there is a presumption attached to the genuiness. Therefore, the contention that the valuation made by the Sales Tax Authorities would not be accepted by the Income Tax Authorities does not stand to reason. 6. It is th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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