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TMI Blog2012 (9) TMI 654X X X X Extracts X X X X X X X X Extracts X X X X ..... the opinion that in the fairness of things and to meet the ends of justice this matter be remanded to the file of A.O for verification. Case remand back to AO. Addition on account of difference in stock found during survey u/s 132 - Assessee submit stock statement on the basis of purchases worked out on FIFO method inclusive of transportation and loading charges – AO made addition on basis of difference found in statement and stock shown in books of accounts – Held that:- As the discrepancy could not be reconciled and satisfactorily explained by assessee. The Assessee could not demonstrate before CIT(A) that the closing stock was without transportation charges and loading charges. The Ld. A.R. before us also could not demonstrate with a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd sustained by CIT (A)-I, Surat is not just and proper. 3. If the addition made by the A.O. sustained by Ld. CIT (A)-I, Surat is upheld, then the disclosure made for Rs.41 lakhs as income during survey is requested to be deleted. 3. The brief facts are that assessee is Proprietor of Damanganga Steel and is engaged in the trading of Iron and Steel. She filed her return of income on 31-10-2005 declaring income of Rs.42,52,700/-. A survey action u/s 133A was conducted on 9-3-2005 and her statement was recorded on oath. The assessee made a disclosure of additional income under the following heads:- (1) Excess cash. Rs. 2,00,000/- (2) Excess stock Rs.34,00,000/- (3) Miscellaneous income Rs. 5,00,000/- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he matter in appeal before the CIT (A). 2.3. I have considered the submission made by the appellant and the observation of the A.O. The excess cash found during the course of survey was Rs.2,04,042/- whereas as per the books of account produced during the assessment proceedings even after the books of account were completed the cash balance on the date of survey is only Rs.16,076/-.Since the books of account have been completely written and the cash balance is still unexplainable the addition made by the A.O. in respect of excess cash found is correct however the addition of Rs.2 lacs is reduced to Rs.1,87,966/- being the difference of the cash actually found and as per the books of account on the date of survey. Hence this ground of app ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at the premises of the Assessee. During the course of survey the assessee made disclosure of Rs 41 lacs comprising of excess cash of Rs 2 lac, excess stock of Rs 34 lacs and miscellaneous income of Rs 5 lac. In the profit and loss account the Assessee had disclosed Rs. 41 lac as IT declared stock and the same was offered for tax. The AO had also made an addition on account of excess amount of cash of Rs 2 lac found during the course of survey. From the assessment order of the AO and the order of CIT(A) it is not clear as to whether the amount of Rs 41 lacs includes Rs 2 lac of excess cash found. In view of these facts, we are of the opinion that in the fairness of things and to meet the ends of justice this matter be remanded to the file ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... A.O. I do not agree with the appellant. The FIFO method is correct method to follow. The stock must include the transportation charges and loading charges to bring the stock to the godown and hence the addition made by the A.O. is confirmed. This ground of appeal is therefore, dismissed. 13. Against the above order of CIT(A), now the assessee is in appeal before the Tribunal. 14. Before us, the Ld. A.R. submitted that at the time of filing of income tax return, stock statement as on 31.3.2005 was submitted alongwith the quantity and value which was without transport charges and loading charges while the stock statement asked for was including transport charges and loading charges. The valuation ascertained by the survey party was also ..... X X X X Extracts X X X X X X X X Extracts X X X X
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