9911796707
TMI Blog2017 (7) TMI 39X X X X Extracts X X X X X X X X Extracts X X X X ..... the argument on behalf of the Revenue that the bank having had verified the stock, stated to be there with the assessee, such should be accepted for the purpose of the addition being sustained. The judgments relied upon by the assessee lend credence to our accepting the Tribunal’s finding on fact. When the Revenue itself could not detect a discrepancy in the stock, relying upon a verification made by a person not concerned with the assessment cannot be relevant evidence to lawfully presume undisclosed income. The correctness of the verification made by the bank was not determined. That is not a matter for consideration or adjudication in this appeal. No substantial question of law - G.A No. 1689 of 2016, ITAT No. 215 of 2016 - - - Dated:- 29-6-2017 - Aniruddha Bose And Arindam Sinha, JJ. Mr. Dutta, Adv. for the Revenue Mr. Majumdar, Adv. for the Assessee JUDGMENT Arindam Sinha, J. The Revenue seeks to prefer appeal against order dated 2nd December, 2015 passed by the Income Tax Appellate Tribunal, Bench B Kolkata, in ITA no.1436/KOL/2011 pertaining to the assessment year 2008-09. The facts are that the assessee is an individual. He carries on business ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng to ₹ 4,66,300/- which had not been entered in the regular books of accounts of the assessee is to be treated as business income of the assessee. (e) Whether the order of the Income tax Appellate Tribunal sustainable for the deletions of ₹ 4,66,300/- when the assessee admittedly following the mercantile system of accounting and therefore the assessee is liable to be accounted for which he failed. Mr. Dutta, learned advocate appeared on behalf of the Revenue and submitted that even if all the bills were not received by the parties, that did not prove the purchases were not made. The assessee had issued authorization letter to the truck driver to take delivery of goods from the supplier mentioning truck number. It was a clear case of undisclosed purchases attracting the provision in section 69B of the Income Tax Act, 1961. The explanation of nonreceipt of the bills by the supplier is no explanation at all and the Assessing Officer had duly made the addition. He added that in the event this Court required a further enquiry on facts, the issue might be remanded to the Assessing Officer. Regarding discrepancy arising out of value of stocks declared by the as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of acknowledgement of delivery on three of the delivery challanas was relied upon as evidence for such finding. There was no perversity and hence no interference was warranted. On the issue of stock statement he relied upon several judgments. He submitted, the Madras High Court in the case of CIT Vs. N. Swamy reported in (2000) 241 ITR 363 had not agreed with the observations made by it earlier in Coimbatore Spinning and Weaving Co. Ltd. (supra). He relied upon the following view expressed therein as is reproduced below: We find it a little difficult to agree with those observations. The assessee s income is to be assessed by the Income tax Officer on the basis of the material which is required to be considered for the purpose of assessment and ordinarily not on the basis of the statement which the assessee may have given to a third party unless there is material to corroborate that statement of the assessee given to a third party, even if it be a bank. The mere fact that the assessee had made such a statement by itself cannot be treated as having resulted in an irrebuttable presumption against the assessee. The burden of showing that the assessee had undisclosed income is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... flated 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 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. Lastly he relied on a judgment of the Supreme Court in the case of CIT Vs. Narendra Doshi reported in (2002) 254 ITR 606 (SC) to submit that the decisions rendered by the High Courts as relied upon by him stood accepted by the Revenue since the correctness of those decisions had not been challenged. They must, therefore, be bound by the principles laid down therein as had been held by the Supreme Court. On the first issue the Assessing Officer recorded the submission of the assessee and held as follows: that all the bills have duly been incorporated in respect of th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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