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TMI Blog2012 (11) TMI 350X X X X Extracts X X X X X X X X Extracts X X X X ..... on - Held that:- The discrepancy in stock of Rs.7,65,000/- had been included in the closing stock and credited in the P&L account by assessee - no reason to intervene in the order of the CIT(A) - in favour of assessee. Unaccounted scrap sale - CIT(A) deleted the addition - Held that:- Held that:- The assessee has included scrap sale in sale of boxes and made part of P&L account of the year under consideration - no reason to intervene in the order of the CIT(A) - in favour of assessee. Disallowance u/s.43B - Held that:- PPF amount had been paid within due date of filing return. Therefore, the A.O. is directed to verify the payment - in favour of assessee for statistical purposes. - ITA No. 1160/Ahd/2009 & C.O. No.88/Ahd/2009 - - - Dat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (b) The CIT(A) failed to appreciate that the assessee had failed to produce any statement/account before the Assessing Officer showing that Rs.765000/- was added in the stock of the company. 3(a) On the facts and in the circumstances of the case and in law, the Ld. CIT(A) erred in deleting the addition of Rs.3,50,000/- on account of unaccounted scrap sales. 3(b) The CIT(A) failed to appreciate the fact that this addition was based on the statement of the Director, Shri gursharan Sethi recorded during survey u/s. 133A wherein he had accepted that the scrap is generated in the process of manufacturing of corrugated boxes at 5 to 8% and offered the same as additional income. 3. The A.O. observed that the appellant had failed to produce t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d that non-maintenance of stock register is not a sufficient cause for rejection of book result u/s. 145 of the IT Act. He also relied upon following case: (i) Pushpanjali Dyeing Printing Mills (P) Ltd. vs. JCIT 72 TTJ page 886 (Ahd) (ii) Geetanjali Woollens Pvt. Ltd. vs. ACIT 121CTR page128 (Ahd). 5. Now the Revenue is before us. Ld. Sr. D.R. vehemently relied upon the order of the A.O. and he argued that the appellant had not been maintaining the stock register as admitted by the Director during the course of survey proceeding and requested to confirm the addition made by the A.O. From the side of the assessee, it is contended that books of account are reliable. The company is a private limited company and maintaining all the bo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... through the paper book filed before us. The GP rate worked out by the A.O. in year under consideration @16.04% which was 23.01% in immediate preceding year. He was maintaining other books i.e. purchase register, sales register, details of manufacturing cash book and ledger etc. The books of account are audited which has been accepted by the other departments. The ld. A.O. had not brought on record any particular defects in the books of account. Therefore, we do not find any reason to intervene in the order of the CIT(A). The Revenue s appeal is dismissed on this ground. 7. As discussed in ground no.1 that there was a survey at the business premises of the assessee. There was a discrepancy in stock of Rs.7,61,290/-. Shri gursharan Sethi, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or on account of unaccounted scrap sale of Rs.3,50,000/- during the course of survey proceeding. The appellant claimed before the A.O. that the scrap sale has been included in the income of the assessee company and no retraction has been made by the appellant. There was an entry passed in the books of account on 13.02.2003 as bill for sale of scrap and cash in hand as on 13.02.2003. Ld. CIT(A) deleted the addition by considering the assessee s same reply. 11. Now the matter is before us. Ld. Sr. D.R. vehemently relied on the order of the A.O. and argued that the assessee had retracted from the additional income disclosed. Therefore, the ld. A.O. was right in adding Rs.3,50,000/- on account of unrecorded scrap sale. But from the side of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of addition of Rs.3,50,000/- on account of unaccounted sale of scrap. It is submitted that the order of the Ld. C.I.T.(A) is well reasoned, on facts of the case and keeping in mind the various case-laws and hence it is submitted that the same be upheld and appeal of the Income tax department be dismissed. 2. Without prejudice to above, it is submitted that the Ld. CIT(A) has erred in confirming the addition made by the A.O. as under:- (a) Depreciation on boiler was rightly claimed by the appellant at Rs.1,00,103/- as per Rules and it is submitted that as per facts of the case and as per provisions of Law, the Ld.C.I.T.(A) ought to have allowed depreciation at Rs.1,00,103/-. (b) Disallowance of Rs.15,506/- u/s. 43B of the I.T. Act. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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