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TMI Blog2013 (11) TMI 1061X X X X Extracts X X X X X X X X Extracts X X X X ..... ya Garg, Advocate ORDER Dr. Bharat Bhushan Parsoon, J. Vide order dated 17.2.1997, Income Tax Appellate Tribunal, Chandigarh Bench (hereinafter referred to as, the Tribunal) while dealing with reference applications of the revenue (arising out of Tribunal's order dated 12.12.1991 in ITA Nos.583 and 584/ASR/86 relating to assessment years 1981-82 and 1983-84) in consonance with orders of 6.11 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... short, the Act) at a net taxable income of Rs.10,54,390/- which, interalia, included addition of Rs.7 lacs on account of difference in stock declared in the books of accounts and in the hypothecation statement given by the assessee to the bank. In appeal filed by the assessee, the Commissioner of Income Tax (Appeals), Jalandhar [for short, the CIT(A)] vide its order of 26.9.1986 deleted the addit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessing Officer had made an addition of Rs.7 lacs in each of assessment years. As already noticed, the CIT(A) and the Tribunal had disagreed with the findings of the Assessing Officer (for short, the AO). Consequently, finding of addition of Rs.7 lacs made by the AO was reversed. 4. We have heard counsel for the parties while going through the paper book. 5. The revenue has claimed that the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on account of difference in value of stock hypothecated with the bank, in comparison to the stock reflected in the books of accounts of the assessee. 7. When rival claims of the parties are evaluated in the interface of factual matrix and other attending circumstances, it is clear that the AO while making addition of Rs.7 lacs in each assessment year acted upon a presumption that books of account ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o make reference to report of the bank regarding physical verification of hypothecated stock of the assessee. In absence of reference to such verification report of the bank qua hypothecated stock as per statement furnished by the assessee, oversized treatment to stock statement of the assessee in derogation to the entries of the books of accounts, was not correct. The Tribunal was thus right in a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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