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TMI Blog2018 (9) TMI 219X X X X Extracts X X X X X X X X Extracts X X X X ..... dered view the burden of proof lay on the assessee to explain the variation and this was no discharged. The assessee filed a printout of the stock journal register and item register for the relevant period before the First Appellate Authority and has sought to explain the differences by way of examples. This, in our opinion, does not prove the case of the assessee. The assessee could not controvert the finding of the First Appellate Authority that he has not maintained carat wise details of the stock. In any event, opening stock as well as the closing stock for all the three assessment years have been valued on the same principles i.e. average stock method. - Decided against assessee. - I.T.A.T. No.400 of 2017, G.A. No.3768 of 2017 And ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d the Revenue to go by the tax audit report only. His explanation was that the tax audit report actually contained the value arrived at on the basis of physical verification whereas the computer maintained account only contained value calculated on the basis of average cost. The Commissioner of Income Tax (Appeals) confirmed the order of the Assessing Officer in respect of all the three assessment years on near identical reasoning. In this judgement, we shall reproduce the reasoning of the Commissioner pertaining to the assessment year 2009-10, which runs as :- 3.1 . These submissions of the Appellant have been considered. It is however seen that as per the details provided the Appellant has not maintained Carat wise detai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of 3 years i.e. A.Y. 2007-08, 2008-09 and 2009-10. 3.2 . The Appellant s reliance on the decision of the Hon ble ITAT in Apan Jewellers, Kolkata vs. ACIT, Circle-41 has been considered and it is seen the facts of the above case are distinguishable from the facts in the case of the Appellant as in that case the issue was of small difference of weight of jewellery after valuation of the same by the Approved Valuer during the course of Survey, whereas in the present case the issue was different and was in respect of the profit as per the books of accounts maintained in the computer system vis- -vis a gross profit shown in the Tax Audit Report. Therefore, the submissions of the Appellant in this respect cannot be accepted. It is furt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sheet found by the survey party during the course of survey for all the three assessment years. His only contention is that the closing stock valuation was an error. During the course of assessment proceedings, the assessee never explained these issues before the A.O. No explanation was given and no attempt was made to reconcile the differences. The stock registers were not produced except claiming that there is a variation due to lack of knowledge of operating computer software by the accountant. No variation statements were filed before A.O. or the ld. CIT(A) or before us. Illustrations were sought to be given to demonstrate the as to the inappropriateness of valuing the stock as Average cost method. In our considered view the burden of p ..... X X X X Extracts X X X X X X X X Extracts X X X X
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