9911796707
TMI Blog2022 (5) TMI 835X X X X Extracts X X X X X X X X Extracts X X X X ..... n facts and law for making addition of Rs.39,50,000/- overlooking that both the years i.e. impugned year & preceding year books of accounts of assessee were audited u/s. 44AB of the Income Tax Act, 1961. 2. Learned counsel for the assessee submitted that the Assessing Officer was not correct in making addition of Rs.39,50,000/- due to difference between the opening stock of relevant year and closing stock of immediately preceding financial year. Ld. Counsel submitted that the addition has been made by the Assessing Officer and confirmed by the ld. CIT(A) by ignoring or overlooking the fact that for both the years, i.e., the year under consideration and immediately preceding year, books of accounts of the assessee were audited u/s. 44AB of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me cannot be alleged as manipulation in accounts. Therefore, the addition may kindly be deleted. 3. Replying to the above, the ld. DR vehemently supported the assessment as well as first appellate order and submitted that the assessee has shown higher figure of opening and closing stocks and this had been done only to manipulate the figures of stocks. He further submitted that since the assessee has taken value of opening stock as on 01.04.2013 inflating the same by Rs.39,50,000/- in comparison to closing stock shown as on 31.03.2013, therefore, the Assessing Officer was right in taking adverse inference against the assessee and to make addition u/s. 69 of the Act. 4. Placing rejoinder to the above, ld. Counsel submitted that the main gri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e at the very first instance, told truth to the Revenue Authorities without any agitation or resistance. 6. At the same time, from careful reading of the first appellate order, we observe that during the first appeal proceedings, the assessee submitted a detailed submission explaining the facts and circumstances and compelling situation to show higher figure of opening stock as on 01.04.2013. The assessee also submitted a chart there under showing GP and NP rates. On perusal of said submissions and the chart showing sales, GP and NP, I clearly observe that the net profit shown by the assessee is 1.44% of turnover which is lesser than the average NP rate of immediately preceding two years. I may point out that no addition has been made by t ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
