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TMI Blog2016 (1) TMI 373X X X X Extracts X X X X X X X X Extracts X X X X ..... damaged by the Railways, the appellate Tribunal was justified, in law, in sustaining the valuation of the closing stocks of such goods at the same rate as that of non-damaged goods? 2. Whether on the facts and circumstances of the case, can it be said that a reasonable opportunity has been given to the assessee to prove his contention with regard to the addition of Rs. 34, 675/- to assessee's income and whether the Tribunal was justified in sustaining the addition of that amount." The brief facts of the case are as follows: The assessee is a registered firm and the reference relates to the assessment year 1975-76. The Income Tax officer in the course of the assessment proceedings found that the assessee had valued the closing stock ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lusion that the nature and source of these excess stocks was not forthcoming and treated the value of these excess stocks amounting to Rs. 34,675/- in the aggregate as assessee's income from undisclosed sources. The assessment was, therefore, completed after making these additions and some other additions as well. The assessee was aggrieved by the assessment and, therefore, went up in appeal before the Commissioner of Income-tax (Appeals). The Commissioner of Income-tax (Appeals), however, held that the assessee could value the stocks of chillies, and Dhania, either at the market rate or at the cost price, whichever was lower. On this basis, the Commissioner of Income-tax (Appeals) reduced the addition in Chillies account to Rs. 19,360 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the circumstances, the C.I.T. (Appeals) in our view was perfectly justified in valuing these stocks at the market price or cost price whichever was lower and in sustaining the addition on this basis. On this issue, therefore, the order of the Commissioner of Income-tax (Appeals) does not call for any interference." "Addition for value of unexplained excess stocks of Haldi, big cardimum and Mangraila: We have carefully considered the rival submissions. Following with respect the ruling of the Hon'ble High Court of Madras in the case of Coimbatore Spinning and Weaving Co. Ltd. V. C.I.T. (supra), we hold that if the assessee claims that it had pledged stocks of other persons also with the bank contrary to its sworn statement furnished ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ave 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. No interference on this issue, therefore, appears called for." We have heard the learned counsel for the parties and gone through the order of the tribunal and the order of the Appellate Authority. We are of the opinion that there is no error in both orders. The Commissioner of Income- tax (Appeals) has rightly held the closing stock is to be valued either at the cost price or the market rate whichever is less and accordingly valued closing stock of Chillies and Dhania on the basis of the cost price. We do not find any error in the above view. So far as the addition of Rs. 34,675 i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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