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TMI Blog2016 (9) TMI 17X X X X Extracts X X X X X X X X Extracts X X X X ..... on 04.05.2010 for consideration of the following substantial question of law: "Whether on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal was right in law and on facts in deleting the addition of Rs. 59,00,659/- made on account of difference in stock statement as furnished before the bank and the stock recorded in the books of account" 2. The issue involved in this case is addition of Rs. 59,00,659/- made on account of difference in stock as per books of accounts and stock as per stock statement submitted to bank. During the course of assessment proceedings, the Assessing Officer had observed that in the stock statement furnished by the assessee to the bank, it had not only submitted the value of the stoc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 included in the stock of the month of March 2009 and because of such inclusion, the stock position of March 2009 has shown the increase in quantity. It also found that the stock register was maintained by the assessee giving complete quantity details; including month-wise details of raw materials, finished goods and semifinished goods. 9.1 Again, the Court can ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tement 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 under appeal and also held empathetically that after giving effect to the additions made by the Assessing Officer, the financial statement would get completely distorted; if such inclusion/ addition as made by the Assessing Officer is allowed to continue." 5. Similarly, another identical issue had come up before this Court and this Court vide judgement and ord ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r and therefore the Assessing Officer had rightly considered the same as unaccounted investment made by the assessee in stock. 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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