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TMI Blog2025 (2) TMI 647X X X X Extracts X X X X X X X X Extracts X X X X ..... ving factored the alleged difference in the stock while computing the total income in its RoI, the assessee has offered the excess stock, therefore, in any case, no addition was warranted. Addition u/s. 69 of the Act which was deleted by the CIT(A) by finding that the AO erred in making addition only upon the statement recorded of MD of assessee u/s. 133A by relying on the decision of CIT vs. S. Khader Khan Sons [2007 (7) TMI 182 - MADRAS HIGH COURT] wherein held that "a statement recorded u/s. 133A(3) of the Act does not have any evidentiary value and any admission made during such statement can't be made the basis of addition" which decision has been upheld by the Hon'ble Supreme Court reported [2013 (6) TMI 305 - SC ORDER] since asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ross-Objection also for adjudication. 3. The main grievance of the Revenue is against the action of the Ld.CIT(A) deleting the additions made by the AO on account of excess stock of Rs. 1,01,77,956/- for AY 2018-19. 4. The brief facts are that the assessee company had filed its return of income (RoI) for AY 2018-19 on 30.09.2018 admitting total income at Rs. 3,77,13,008/-. The AO had resorted to re-opening of the assessment for AY 2018-19, taking note of the survey which was conducted on 13.02.2018 in the premise of the assessee [which is into the business of poultry farm i.e. Eggs, chicks and birds and various items of poultry feed]. The AO noted that during the course of survey, survey team took physical stock as [on the date of survey] ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing stock as the value of the closing stock by default. And in this regard, pointed out to the AO that since the value of the closing stock (as on 31.03.2017) was not updated in 'Tally Accounting Software' as on the date of survey (13.02.2018), the computerizing books maintained in Tally Software still showed closing-stock on date of survey as that on 31.03.2017, [which is the opening stock as on 01.04.2017]. In order to support the aforesaid submissions, the assessee brought to the notice of the AO that as per the P&L A/c filed along with the RoI for AY 2018-19, the opening stock as on 01.04.2017 is shown to be Rs. 2,12,95,918/- and this sum/vaue by default is adopted by the 'Tally Accounting Software' as the closing stock as on 31.01.2018 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 't make any entry meaning somebody from the assessee's Office had to enter the stock value, etc., and thereafter, he made an addition of Rs. 1,01,77,956/- u/s. 69 of the Act by order dated 07.03.2022. 6. Aggrieved, the assessee preferred an appeal before the Ld.CIT(A) who was pleased to delete the same on merits. 7. Aggrieved, the Revenue is before us by preferring this appeal and the assessee has filed Cross-Objection supporting the order of the Ld.CIT(A) as well as raised a legal issue assailing the re-opening of assessment. However, we are inclined to first examine the deletion of the addition made by the Ld.CIT(A) on merits. 8. We have heard both the parties and perused the material available on record. We note that the assessee is i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... are' and since, the stock book were not integrated with the financial records resulted in the 'Tally Accounting Software' taking the value of the opening stock as the value of the closing stock (as on 31.03.2017) by default and since the value of closing stock was not updated in the 'Tally Accounting Software' as on the date of survey the difference in stock valuation happened on the date of survey. In order to buttress this fact, the assessee drew our attention to its opening stock shown in the P&L A/c as on 01.04.2017 which reflects Rs. 2,12,95,918/- which was the same value adopted by the software as closing stock as on 31.01.2018 by default by the 'Tally Accounting Software' which closing stock has been taken note by the survey team as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) 300 ITR 157 (Mad) wherein the Hon'ble High Court held that "a statement recorded u/s. 133A(3) of the Act does not have any evidentiary value and any admission made during such statement can't be made the basis of addition" which decision has been upheld by the Hon'ble Supreme Court reported in [2012] 352 ITR 480 (SC). The Ld.CIT(A) also found substance in the assertion of the assessee that the closing stock shown in its book maintained in the 'Tally Accounting Software' as on 31.01.2018 taken note by the survey team was nothing but opening stock reported by the assessee in its books of accounts as on 01.04.2017 [i.e. Rs. 2,12,95,918/-] which was the same figure which was reflected on 31.01.2018; and therefore, the survey team found differ ..... X X X X Extracts X X X X X X X X Extracts X X X X
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