TMI Blog2023 (6) TMI 47X X X X Extracts X X X X X X X X Extracts X X X X ..... ry, 2010 on the following substantial questions of law: (i) Whether on the facts and in the circumstances of the case, the order of the Learned Tribunal was erroneous in so far as it was perverse having been passed without considering the ground that the remand report furnished by the respondent before the C.I.T. (Appeals), was ignored by the CIT (Appeals)? (ii) Whether on the facts and circumstances of the case the order of the Learned Tribunal was erroneous in so far as it fail to consider that the order of the C.I.T. (Appeals) upheld the addition on account of discrepancy in stock even after mentioning that the remand report did not mention any discrepancy in respect of transaction with Annapurna Fertilizers ?" We have heard Mr. A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erms: As directed I am to report as under for your kind perusal - 1. (i) Sri Ghosh, during the course of hearing stated that the assessee maintained stock register during the relevant period and stock shown in the account was as per stock register and stock summary enclosed with the audit report reflects closing stock as on 31.3.2004. (ii) During the course of assessment proceedings the bank was asked to furnish details in respect of CC A/c maintained by the assessee. The bank inter-alia sent copy of inspection report which is enclosed herewith for your ready reference. (iii) 9 (nine) copies of stock statement filed by the assessee and as forwarded by the bank are enclosed herewith. 2. Out of total cash payment of Rs. 3,07,650/- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ether physical stock tallies with the stock statement. The CIT(A) did not take into consideration this aspect of the matter. The legal issue is as to whether the assessee could be taxed based upon the inflated stock shown in the stock statement submitted to the bank. This issue is no longer res integra and has been decided in the Commissioner of Income Tax vs. N. Swami reported in (2000) 241 ITR 363 (Mad.). In the said decision it was held that the assessee's income is to be assessed by the income tax officer on the basis of the material which was required to be considered for the purpose of assessment and ordinarily not on the basis of the statement which the assessee may have given to a third party unless there is material to corroborate ..... X X X X Extracts X X X X X X X X Extracts X X X X
|