9911796707
TMI Blog2010 (1) TMI 713X X X X Extracts X X X X X X X X Extracts X X X X ..... in the account books, the assessee has to explain the nature and source of the stocks and if that is not satisfactorily explained, the value of the stocks can always be treated as assessee's income - no hesitation in coming to the conclusion that the addition of Rs. 34, 675/- on account of excess stocks of Haldi, big cardimum and Mangraila was justified. - 21 of 1984 - - - Dated:- 4-1-2010 - Rajes Kumar, Bala Krishna Narayana, JJ. R.R. Mishra and Rakesh Kumaar for the Appellant B. Agarwal, A. Kumar, A.N. Mahajan, D. Awasthi, G. Krishna, R.K. Upadhyay and S. Chopra for the Respondent JUDGEMENT Rajes Kumar, J:- 1. This is a reference under Section 256 of the Income Tax Act relating to the assessment year 1975-7 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g. There was thus an addition for under valuation of stocks of Rs. 20,780/- in Chillies account and Rs. 2,345/- in Dhania account. The income-Tax Officer further found that the stocks pledged with the bank exceeded the stocks shown in the account books and at the end of the year the excess stock amounted to 3 bags of Haldi, 36 bags of Sonth, 53 bags of big cardimum and 18 bags of Mangraila. The Income- Tax Officer was not satisfied with the assessee's claim that these excess stocks belonged to Shri Shankarji P.O. Maharajganj, Shri Mohan Lal Gupta, P.O. Gorakhpur, Shri Nagina Prasad, resident of Parbatsens, Bihar, and Shri Suraj Nath, P.O. Purnea, Bihar, since inspite of a specific notice, the assessee expressed its inability either to p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the order of the Commissioner of Income-tax (Appeals). The assessee was not satisfied with the order of the Commissioner of Income-tax (Appeals) and, therefore, came up in further appeal before the Appellate Tribunal. The Appellate Tribunal agreed with the Commissioner of Income- tax (Appeals) on both of these issues following findings have been recorded:- "Addition for under valuation of closing stock of chilkies and Dhania:- We have carefully considered the rival submissions. Inspite of a specific query by the Bench, the assessee's learned counsel Dr. Misra was not able to give us particulars of when the claim was made from the Railways or what was the amount of the claim for alleged damage to 121 bags of chillies and loss o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The mere fact that the Income-tax Officer accepted the assessee's claim of goods belonging to Shri Mohan Lal cannot act as an estoppel, to the determination on merits whether the goods of the other persons also existed with the assessee and were pledged with the bank contrary to the sworn declaration before the bank at the time of hypothecation of stocks. The addresses furnished by the assessee, as already described above, were very very scanty and it is not controverted that inspite of the request of the Income-tax officer detailed addresses were not furnished to him. Where an assessee is found to be in possession of stocks which were not entered in the account books, the assessee has to explain the nature and source of the stocks and if ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
