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TMI Blog2014 (12) TMI 1246X X X X Extracts X X X X X X X X Extracts X X X X ..... is answered in the affirmative i.e. against the appellant – revenue and in favour of the assessee. - TAX APPEAL NO. 1371 of 2006 - - - Dated:- 12-12-2014 - MR.JUSTICE KS JHAVERI and MR.JUSTICE K.J.THAKER MR PRANAV G DESAI, ADVOCATE FOR THE APPELLANT MR BS SOPARKAR WITH MRS SWATI SOPARKAR, ADVOCATE FOR THE OPPONENT ORAL JUDGMENT (PER : HONOURABLE MR.JUSTICE KS JHAVERI) 1. Being aggrieved and dissatisfied with the impugned order passed by the Income Tax Appellate Tribunal, Rajkot Bench C (hereinafter referred to as the Tribunal ) dated 31.01.2006 in ITA (SS) No. 30/Rjt/03 for the block assessment period 01.04.1994 to 08.08.2000, the revenue has preferred the present Tax Appeal. 1.1 This appeal was admitte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... alue of the stock and not on the factum of difference in the quantity of the stock shown in the books of account and in the documents furnished to the banking authorities for the purpose of availing credit facilities/loan. However, this version is not acceptable in as much as the Tribunal has noted that there was no physical verification of the stock by the banking authorities as on 31st March 2009. Although much reliance was placed by the Assessing Officer and CIT [A] on the godown visit by the Bank Manager after closing of the year ie., on 25th April 2009, however, no physical verification and counting of the stock took place during such visit and even otherwise, the Bank Managers report indicates that 3000 tonnes of Coil was already incl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... anking authorities for the purpose of availing of larger credit facilities, no addition can be made if there appears to be a difference between the stock shown in the books of account and the statement furnished to the banking authorities. If, for the purpose of fulfilling the margin requirements of the bank purely on inflated estimate basis, when the stock statement had reflected inflated value of the stock, in wake of otherwise satisfactory explanation, both - for the purpose of value as well as quantity, we find no reason to interfere with the order of the Tribunal. 10. As a parting note, it needs to be mentioned that the Tribunal also made an extensive exercise of calling for the financial ratios of seven years and of the current year u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... show and/or point out any contrary decision. 7. Having heard learned advocates appearing on behalf of the parties and the question posed for consideration before us reproduced hereinabove and considering the decisions of this Court, the question which is raised in the present appeal is required to be answered in favour of the assessee. We are not giving further elaborate reasons for the same as in the case of Riddhi Steel and Tubes (Supra) it is held by this Court that only on account of inflated statements furnished to the banking authorities for the purpose of availing of larger credit facilities, no addition can be made if there appears to be a difference between the stock shown in the books of account and the statement furnished to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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