9911796707
TMI Blog1996 (7) TMI 43X X X X Extracts X X X X X X X X Extracts X X X X ..... e of Rs. 85,200, closing stock credited to trading account valued at Rs. 10,36,384.75 and the gross profit disclosed was at Rs. 5,67,261 which comes to 5.85 per cent. But on the basis of certain papers seized in the course of search under section 132(1) of the Income-tax Act, as per the stock inventories seized, the closing stock as on December 31, 1976, comes to Rs. 12,17,727. The Income-tax Officer, alleging that there is an understatement of the closing stock to the extent of Rs. 1,81,341 sent a draft assessment proposing to add this amount as the undisclosed income of the assessee. To the draft assessment, the assessee filed objections before the Income-tax Officer as well as the Inspecting Assistant Commissioner stating that the stock ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ncome-tax (Appeals), the assessee went in appeal to the Income-tax Appellate Tribunal who by annexure C order rejected the appeal on all counts, sustaining the addition made by the Income-tax Officer and also rejecting the contention of the assessee regarding the levy of interest under section 139(8) and section 215 of the Income-tax Act holding that they have already upheld the addition and in that light the assessee would not be entitled to the reduction or cancellation of the interest. The petitioner then moved this court in O. P. No. 960 of 1982-R and in accordance with the judgment of this court in the aforesaid writ petition, the Tribunal was directed to draw up the statement of the case to this court. In compliance with the direction ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... allowed on this account which is arbitrary. All these contentions were carefully considered by the authorities below in a three tier proceedings, namely, the Income-tax Officer, the Commissioner of Income-tax (Appeals) and the Income-tax Appellate Tribunal, and found against the assessee. It is the definite case of the Revenue that the contentions of the assessee that there were duplicate entries in the closing stock entries are totally untenable. The claim of the assessee that there was duplication in the closing stock inventory in respect of several items remains unsubstantiated. As a matter of fact, it is found by the authorities below that the stock was taken very carefully and meticulously measuring each bale and each piece separately ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
