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TMI Blog2012 (7) TMI 957X X X X Extracts X X X X X X X X Extracts X X X X ..... O R D E R PER VIKAS AWASTHY, JUDICIAL MEMBER: The appeal has been filed by the assessee assailing the order of the CIT(A)-IX, Chennai dated 22.02.2012. 2. The assessee is a partnership firm engaged in the business of trading in iron & steel goods. For the assessment year 2008-09, the assessee filed return of its income on 29.9.2008 declaring total income of ₹ 31,27,810/-. The case of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee is in second appeal before the Tribunal impugning the order of the CIT(A) dated 22.2.2012. The grounds raised before the Tribunal are with regard to the additions made by the Assessing Officer on account of under-valuation of closing stock of ₹ 4,78,53,941/- as well as levy of interest under section 234B on the additions made in the income. 3. Shri Banusekar, appearing on behalf of the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... asked for documents relating to the physical quantity of the closing stock. The Assessing Officer had never asked for valuation of the closing stock and the defective stock. He further contended that value of the defective stock is always less than the market value. The Assessing Officer never asked for the details of the defective stock. The Assessing Officer calculated the value of the closing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... CIT(A). A perusal of the order of the CIT(A) shows that the CIT(A) has not taken into consideration the fact that the assessee is maintaining a godown wherein it is difficult to demarcate the old and new stock of iron bars and steel rolls. The sale of iron and steel rolls has to be made on the basis of the convenience of the removal of physical stock. Items which are placed on the top are to be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... removal of physical stock as well as the wastage. The Assessing Officer as well as CIT(A) have erred in not taking into consideration the details of old and defective stock produced by the assessee. Admittedly, the assessee produced the relevant records on issuance of show cause notice. However, the authorities below discarded the same in an arbitrary manner by terming it as afterthought. 7. In v ..... X X X X Extracts X X X X X X X X Extracts X X X X
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