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Issues involved: Appeal against additions u/s 133A - Shortage of stock, negative cash balance, unaccounted sales, unaccounted service charges, unaccounted AMC.
Shortage of stock: During survey, stock valued at Rs. 15,88,660 against declared value of Rs. 32,09,510, showing a shortage of Rs. 16,20,850. Assessee declared additional income of Rs. 3,00,000. AO proposed entire addition. CIT(A) upheld AO's action. Assessee argued only profit on stock deficiency should be considered. Tribunal held unreliable accounts can be rejected u/s 145(3), directed AO to apply 25% GP on total sales, allowing partial relief. Negative cash balance: AO added Rs. 1,19,995 for cash shortage, confirmed by CIT(A). Tribunal found no authority to treat cash shortage as income, deleted the addition. Unaccounted service charges: AO estimated unaccounted service charges at Rs. 7,31,600 based on notebook details. CIT(A) confirmed addition. Tribunal upheld CIT(A)'s decision, considering the charges as unaccounted income, reasonable estimate by survey officers. Conclusion: Appeal partly allowed, deletion of cash shortage addition, upheld additions for stock shortage and unaccounted service charges.
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