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TMI Blog2013 (10) TMI 157X X X X Extracts X X X X X X X X Extracts X X X X ..... survey party had carried out physical stock taking. Valuation thereof and method of computation of valuation has never been in dispute either before the Revenue authorities or before this court - Even after taking into consideration such opening stock, admittedly, there was discrepancy in the physical stock found at the time of survey, even as per the assessee, to the tune of Rs. 11 lakhs – Decided against the Assessee. - TAX APPEAL NO. 1512 of 2011 - - - Dated:- 18-3-2013 - AKIL KURESHI AND SONIA GOKANI , JJ. For the Appellant : Tushar P. Hemani and Ms. Vaibhavi K. Parikh. For the Respondent : K.M. Parikh. ORDER:- PER : Akil Kureshi Assessee is in appeal against the judgement of the Income Tax Appellate Tribunal dat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd comparing the same with the stock reflected in the books of account of assessee, it was found that as on 14.10.2003 there was excess stock of Rs.29.50 lakhs(rounded off). A detailed statement of the assessee was also recorded. In such statement, he agreed to the computation of the closing stock and comparison thereof with the stock reflected in the accounts maintained by the assessee. He was confronted with the excess stock of Rs. 29.50 lakhs being found, to which he agreed that entire computation is being done correctly and he has no dispute with the same. He accepted all the computation but added that he would once again have a look at such computation and if there is any discrepancy, he would bring it to the notice of the officer with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to interfere. He held and observed as under : "4.4 I have carefully considered the submissions of the Authorized Representative and the order of the Assessing Officer. The valuation of stock was done on the premises of the appellant, It was done in the presence of the appellant who has signed every page of inventory. The closing stock was worked out on the basis of the details supplied by the appellant, The appellate as per the records made no attempt to reconcile the difference if any. The Assessing Officer's observations that reconciliation could have been done by the appellant with the help of manual books of account is faultless. The appellant failed to do so. The plea taken by him that he has filed a letter seeking time to recon ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mmon pool found on the business premises of the appellant. Therefore a direct nexus between the business activity of the appellant and the excess stock found during the course of survey was established. Further no evidence has been brought on record which indicates that the appellant has any other source of income which has been utilised by him for acquiring the excess stock found during the course of survey. The reliance of the Assessing Officer on the decision of the Gujarat High Court in the case of Fakir Mohammad Haji Hassan is not correct since the facts of the case are clearly distinguishable from the facts of the case of Fakir Mohammad Haji Hassan. In the said judgement, the Hon'ble High Court had commented that it is not the case of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fficer even before the assessment was completed. The assessee had laid out sufficient material to establish that it was only on account of the error that the computer generated record did not include the opening stock. Had this been taken into consideration, the excess stock found at the time of survey would have come down to less than Rs. 11 lakhs. He submitted that all the authorities committed a grave error in discarding the letter through which he had reconciled the figure of stock as per the record and the physical stock. 7. On the other hand, learned counsel Shri Ketan Parikh for the Revenue opposed the appeal contending that the Revenue authorities and the Tribunal have correctly appreciated the evidence on record. No question of l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... articularly from the discussion in the assessment order that the assessee was maintaining accounts not only in the computer but also manually. Nowhere in such manually maintained accounts also such discrepancy was brought on record. Surely, if the computer error was as simple as ignoring the opening balance of stock as on 1.4.2003, the same could have been easily demonstrated through manually maintained accounts. From the record, we do not find any such attempt was made. 10. Significantly, in presence of the assessee, the survey party had carried out physical stock taking. Valuation thereof and method of computation of valuation has never been in dispute either before the Revenue authorities or before us. In that view of the matter, we co ..... X X X X Extracts X X X X X X X X Extracts X X X X
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