9911796707
TMI Blog2012 (10) TMI 1122X X X X Extracts X X X X X X X X Extracts X X X X ..... facts of the case noted in the impugned order are that the AO has observed that during the course of search physical stock found and taken by the Authorized officer of white butter is NIL, whereas the book stock as on that date is 1,48,813 kgs. It was further observed by the AO that the assessee used to purchase certain items being raw material out of books of accounts and after manufacturing and processing the same it was sold outside the books of accounts. Hence, the AO has treated the difference of 1,48,813 Kgs of white butter as unaccounted sales in the case of the assessee. The AO has made addition of ₹ 1.64 Crores (Rs.1,63,69,430) (148,813 X 110 per Kg in the case of assessee.) Before the learned CIT(A) it was submitted by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... course of search and book stock for white butter, it has mentioned Nil which means that no excess book stock of white butter was found and authorized officer has failed to take such stock, column of stock taken, it has mentioned. Hence, there is no alleged difference in the stock as stated by the AO and addition made by the AO was required to be deleted. Alternatively, the assessee has stated that during the course of search / assessment proceedings, it was submitted that aforesaid stock was sold during the post search period. It was stated that no part of alleged white butter which was physically there as on the date of search, but not taken by the AO should be treated as undisclosed sales since entire stock on the basis of FIFO method ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee has relied on the decision of ITAT Ahmedabad Bench in case of ACIT Vs Mercury Metal P. Ltd., 90 TTJ 156. The learned Counsel for the assessee alternatively took the ground that only gross profit can be estimated on the aforesaid alleged unaccounted sale. He has also taken one more alternative ground that if the AO was of the view that sale of white butter was sold outside the books of accounts, credit for white butter, which was shown in book stock was required to be given and only profit and loss of such sale could be made. 3. The learned CIT(A) considering the explanation of the assessee in the light of the order of ITAT Ahmedabad Bench in the case of Mercury Metal P. Ltd.. 90 TTJ 156 deleted the addition. His findings in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... during the year and shown in financial statements. The assessing officer has made an addition of alleged difference entirely on presumption and without bringing any other corroborative evidence to support his plea that there is unaccounted sales in the case of the appellant arid even during the course of search, no such evidence of sales were found. Further, the ratio of Ahmedabad Bench of Tribunal in case of ACIT Vs Mercury Metal P. Ltd. 90 TTJ 156 squarely applies to the facts of the case of the appellant whereby the Tribunal has held as under: Income-Addition-Alleged sales of stock outside books -Contention of assessee that stock cannot be said to have been sold outside the books since subsequent sales have been made from the sto ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s of the case, no inference is called for in the order of CIT(A). Same is upheld. Respectfully following the decision of the Ahmedabad I.T.A.T. and fact that AO has not disputed any sales, recorded during post search period and no other evidence regarding unaccounted sales have been found in case of appellant company, I direct the assessing officer to delete the addition of alleged unaccounted sale of ₹ 1,63,69,430/- made by him in case of the appellant, because entire stock found as per bocks of accounts has been subsequently sold and duly recorded in the books of accounts. Hence the addition made by the assessing officer is deleted. 4. The learned DR relied upon the order of the AO and submitted that since sales were no ..... X X X X Extracts X X X X X X X X Extracts X X X X
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