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TMI Blog1992 (8) TMI 122X X X X Extracts X X X X X X X X Extracts X X X X ..... t 20 days before the close of the accounting year when physical inventory of stock was drawn, the value of which was arrived at Rs. 9,62,000 plus. The stock was taken physically on actual basis and there was no record in respect of quantitative details, i.e., in respect of goods inward as also goods outward because as per the assessee it was not possible to maintain such details on records. Therefore, to find out whether the stock of Rs. 9,62,000 plus could be held by the assessee as per the books of accounts maintained, a trading account was drawn on 11-3-1987 making certain adjustments and it was found by the assessing officer that the assessee held excess stock of Rs. 2,55,273. During the course of assessment proceedings the results of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... epartmental Representative highlighted certain factual aspects of the case. The submissions are dealt with in our findings recorded hereinafter. 5. On going through the entire material and considering the submissions, in our opinion, the addition is required to be confirmed. On 11-3-1987 the stock found under section 133A was as per the physical inventory prepared on the same date for which there cannot be any dispute. The stock belonged to the assessee and, therefore, the ownership is established. It is also a fact that assessee has not maintained quantitative stock records, item-wise of opening stock plus quantity inward less quantities outward, so as to give position of actual stock on any given point of time. In the absence of any reco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d justifiably because the assessee had not been able to lead the necessary evidence to prove that the goods were received earlier and still remained in the stock. Besides even where some evidence was given in the form of two invoices for purchase of silver ornaments from M. K. Gems, the explanation was found to be false. Though the assessee submitted that there was a mistake on the part of the assessee and, therefore, it was subsequently admitted so, yet this fact throws ample light on conduct of the assessee. It was further stated that purchases of other parties should have been verified by assessing officer from the records of the other parties, but in our opinion, it was not necessary for the assessing officer to undertake such exercise ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e pressed into service, as placed in the paper book. Besides, recent order in the case of Marble Emporium [IT Appeal Nos. 5338 and 5339 (Delhi) of 1987 dated 7-12-1990] passed by ' A ' Bench of the Tribunal was also placed before the Bench and the contents were read out. 8.1 This factual contention of Mr. Agarwal would carry the point if the accounting intricacies of this case are not properly appreciated. Before this arrangement becomes worthy of acceptance, following data should exist : (a) Article-wise identification of stock treated as undisclosed. (b) Co-relation of these articles with those sold during the period between 11-3-1987 to 31-3-1987. (c) Co-relation of unsold articles with those shown in inventory of closing stock and s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iple could not be properly appreciated, whereas according to him, there was a direct decision of Bombay High Court in the case of Ramanlal Kacharulal Tejmal v. CIT [1984] 146 ITR 368 where it was held that investment in stock could be taxed under section 69. Mr. Gupta also placed before the Bench meaning of the word " investment " given in Webster dictionary. Mr. Agarwal could not contradict how the decision of the Bombay High Court in the case, referred to above, was not applicable. In our opinion, section 69 is rightly applied because it refers to the investment made by the assessee in an asset, whether stock-in-trade or investment is irrelevant.
12. to 20. [These paras are not reproduced here as they involve minor issues. X X X X Extracts X X X X X X X X Extracts X X X X
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