9911796707
|
Home
Issues:
1. Addition of Rs. 4,98,110 towards gross profit on account of difference in the closing stock. Analysis: The case involved a partnership firm engaged in various businesses, including timber logs, teak poles, and firewood. The Assessing Officer added Rs. 4,98,110 to the value of the closing stock, alleging undervaluation based on seized books of account. The firm contended that the seized register was not a stock register but a property mark register for transport permits. The Commissioner of Income-tax (Appeals) upheld the addition, relying on forest authorities' verification of stock. However, the Tribunal disagreed, noting that the property mark register did not reflect all stock details. The Tribunal deleted the addition, prompting a reference to the High Court. The Revenue argued that the Tribunal overlooked crucial evidence, including discrepancies in stock quantities. They contended that the forest authorities verified the stock and found discrepancies, supporting the addition. The firm claimed there was no physical verification and presented a document from a forest official, which was not considered as it was introduced late. The Tribunal's decision was based on the lack of physical verification and the nature of the property mark register. The Assessing Officer and Commissioner had noted discrepancies, leading to the addition. The High Court emphasized that the key issue was the variation in physical stock, certified by forest authorities, and the Tribunal's failure to address discrepancies properly. Therefore, the High Court ruled in favor of the Revenue, overturning the Tribunal's decision and upholding the addition of Rs. 4,98,110 towards gross profit on account of the difference in closing stock.
|
