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TMI Blog2023 (1) TMI 1393X X X X Extracts X X X X X X X X Extracts X X X X ..... said amount but no set-off has been provided by treating the same at the nil value and therefore, the Tribunal held that the closing stock of Assessment Year 2009-10 is required to be treated as opening stock and could not have been disallowed by the Assessing Officer as well as by CIT(A). No addition is require to be made on account of opening stock as the same is tax natural exercise. Therefore we hereby set aside the finding of the learned CIT(A) and direct the AO to delete the addition made by him. Hence, the ground of appeal raised by the assessee is hereby allowed. - HONOURABLE MR. JUSTICE BHARGAV D. KARIA And HONOURABLE MR. JUSTICE NIRAL R. MEHTA MR NIKUNT RAVAL FOR MRS KALPANA K RAVAL(1046) FOR THE APPELLANT(S) NO. 1 MR B S SOPAR ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e CIT(A). The CIT(A), vide order dated 28th December, 2015, dismissed the appeal of the assessee. 2.3 In the Appeal against the said order, the Tribunal vide order dated 31st August, 2022 allowed the same and deleted the addition of Rs. 02,93,12,514/- on account of Section 69C of the Act. 3. Assessing Officer and CIT(A) disallowed the opening stock of Rs. 02,93,12,514/- on the ground that in the order for Assessment Year 2009-10, the transaction of the appellant with KFIL was not verifiable and only closing stock was reflected in the books of accounts where it had actually been sold outside the books. It was, therefore, held that there was actually no closing stock of the amount included in the income of the assessee. Assessing Officer and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reby no actual closing stock available. Thus, it means that the opening stock carried forwarded from A.Y. 2009-10 in the year under consideration is also nil. However, we note that the profit declared by the assessee for the A.Y. 2009-10 includes the closing stock of Rs. 2,93,12,514/-but no setoff has been provided by treating the same at nil value, meaning thereby, that the closing stock shown by the assessee was taxed in the previous year i.e. A.Y. 2009- 10 and thus again making addition of the same in the year under consideration by disallowing of opening stock will amount to double taxation which is not warranted under the statue. As such, it the Revenue wants to make addition in the year under consideration on account of opening stock, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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