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TMI Blog2018 (6) TMI 1105X X X X Extracts X X X X X X X X Extracts X X X X ..... 2001 (11) TMI 14 - RAJASTHAN HIGH COURT) wherein it was held that no addition could be made to the income of the assessee on the basis of stock statement submitted to the bank which was deliberately inflated by the assessee only to get higher limit of credit from bank. Delete the addition of ₹ 10,00,890/- made by the AO and confirmed by the Ld. CIT(A) on the basis of inflated value of stock declared by the assessee to the bank for availing higher credit facility. - Decided in favour of assessee. - I.T.A. No. 181/Kol/2018 - - - Dated:- 20-6-2018 - Shri P.M. Jagtap, AM For The Assessee : Shri Sanjoy Chatterjee, FCA For The Revenue : Shri D.C. Mondal, Addl. CIT ORDER This appeal filed by the assessee is directe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... availing cash credit facility was ₹ 15,29,500/- while the valuation of closing stock as reflected in the balance sheet of the assessee was ₹ 5,28,610/-. Since the assessee could not offer any explanation as regards this difference of ₹ 10,00,890/- in the value of closing stock to the satisfaction of the AO, the later made an addition of ₹ 10,00,890/- to the total income of the assessee in the assessment completed under section 143(3) read with rule 263 vide an order dated 24.08.2015. 3. Against the order passed by the A.O. u/s 143(3) read with rule 263, an appeal was preferred by the assessee before the Ld. CIT(A) challenging the addition made by the AO on account of difference in the value of closing stock and s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er, I am of the view that in the peculiar facts and circumstances of the case, in the facts as it stand, the ground raised by the assessee deserves to be rejected. Even when the arguments advanced on behalf of the assessee are accepted for the moment, it is seen that the figures do not reconcile even then. Thus the assessee despite being given more than sufficient opportunity has not been able to explain the discrepancy in stock. No new document or evidence has been brought to the notice of the Bench, nor has the assessee been able to show how the document has been wrongly considered. As such neither on facts nor on law the assessee s explanation is acceptable, as the alleged practice cannot be given judicial notice. Reliance is placed upon ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eneral in nature and does not require any separate adjudication. 4. I have heard the arguments of both the sides and also perused the relevant material available on record. Although the learned DR has strongly relied on the impugned order of the Ld. CIT(A) in support of the revenue s case on the issue under consideration, it is observed that this issue is squarely covered in favour of the assessee, apart from the various decisions of this Tribunal, by the decision of Hon ble Madras High Court in the case of CIT vs App Com Computers Pvt. Ltd. 158 taxman 363 and Hon ble Rajasthan High Court in the case of CIT vs Relaxo Footwear 123 taxman 322. As held by the Hon ble Madras High Court in the case of Apcom Computers Pvt. Ltd. (supra), dif ..... X X X X Extracts X X X X X X X X Extracts X X X X
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