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TMI Blog2024 (1) TMI 361X X X X Extracts X X X X X X X X Extracts X X X X ..... alued it without justifying with the comparable cases? - HELD THAT:- As the findings of fact arrived at by the Assessing Officer and CIT (Appeal) are without any basis and contrary to the materials produced on record by the Assessing Officer in form of the stock statements of various C and F locations whose stocks were physically taken and verified by the Firms of the Chartered Accountant of those locations. The Tribunal has therefore in order to prevent the revenue leakage has adopted a middle path by restricting the addition to 25% in the closing stock. We would also like to observe that the Tribunal ought not to have restricted such addition to 25% without any basis and only by estimating the same in absence of any material on record for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ged or unsaleable product and valued it without justifying with the comparable cases, therefore, the decision is not in consonance with facts on record?" 3. The brief facts of the case are that the assessee filed its return of income for Assessment Year 2011-12 on 27.09.2011 declaring the total income of Rs. 15,42,78,960/-. Thereafter the scrutiny assessment under Section 143(3) of the Act was completed on 28.03.2014 determining the total taxable income of Rs. 20,17,38,450/- after making various additions including the addition under challenge of Rs. 2,22,74,370/- on account of closing stock made by the Assessing Officer. 4. Being aggrieved, the assessee preferred the appeal before the CIT (Appeal) who dismissed the appeal vide order dat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ave been done by the Tribunal in absence of any material on record. It was submitted that the CIT (Appeal) after carefully examining the submissions made by the assessee as well as the materials on record has upheld the order passed by the Assessing Officer by confirming the disallowance of Rs. 2,22,74,370/- with regard to the addition in the closing stock in respect of each item. 8. On the other hand, learned advocate Mr. Manish Shah appearing on caveat for the respondent-assessee submitted that the CIT (Appeal) has not considered the submissions made by the assessee in true perspective. He invited the attention of the Court to the following submissions made by the assessee before the CIT (Appeal): "Moreover you have asked us to provide ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ided all the relevant details and statement of closing stock quantity by segregating into saleable and unsaleable (expired/ leakage) for the perusal of the CIT (Appeal) and has also provided stock statements of various 'C' and 'F' locations whose stocks were physically taken and verified by the Firms Chartered Accountant of those locations wherein they certified in the statement itself the stocks has expired, damaged or leakage or unsaleable from the total stock. It was further submitted that the addition made in closing stock by the Assessing Officer and retained by the Tribunal upto 25% would have a cascading effect in the next years. It was further submitted that the assessee has not preferred any appeal challenging the addition confirme ..... X X X X Extracts X X X X X X X X Extracts X X X X
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