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TMI Blog2025 (4) TMI 38X X X X Extracts X X X X X X X X Extracts X X X X ..... the delay in filing the appeal was on account of time taken in taking administrative approvals and therefore, may be condoned. After considering the contentions of the revenue and the reasons stated in the condonation petition, we find that the delay in filing the appeals is for genuine and bonafide reasons and accordingly, the same is condoned by admitting the appeals for adjudication. 03. The ground raised by the Revenue is as under:- "1. Whether in the facts and circumstances of the case, the CIT (A) was justified in deleting the addition of Rs. 26,60,32,067/- made on account of increase in inventory, without appreciating the fact that the assessee did not furnish any explanation for such increase in the value of the inventory. 2. W ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s. 20,82,58,144/- and addition of Miscellaneous Expenses of Rs. 19,29,968/-, Rs. 3,46,96,171/- on account of manufacturing expense, selling expenses, administrative expenses, Interest and other finance charge and Rs. 4,91,906/- on the basis of ITS details. 06. In the appellate proceedings, the ld. CIT (A) deleted the addition in respect of increase in inventories and addition of income on the basis of ITS by observing and holding as under:- "4.0 Assessee in its grounds of appeal no. 4 has challenged the addition of Rs. 26,60,32,067/- on account of inventory of stock. He has labelled this addition as arbitrary. In the statement of facts, the appellant has stated that the A.O. had not only added the credit entries but has also added the de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... anation (compliance by the assessee). This, in itself, cannot be a ground of addition when the source of funds have been added u/s 68. It is a fact that the company has brought money in the form of share application money, creditors, advance etc. Though these items have been treated as unexplained credit u/s 68 but there is no denying the fact that the money was there. If money was there, money must by lying in any from i.e. cash, bank, assets etc. The present Assessing Officer also in his remand report has not given any convincing reply in favour of the addition. He has suggested the theory of presumption that investment in inventory might have been made out of the money added u/s 68 on account of unexplained liability. The Assessing Offic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case benefit of doubt goes to the assessee. So, this addition of Rs. 4,91,906/- is also deleted." 07. After hearing the rival contentions and perusing the materials available on record, we find that the ld. CIT (A) has rightly deleted the addition in respect of increase in inventories as well as income added on the basis of ITS details. So far as the deletion of addition of Rs. 26,60,32,067/-, is concerned the ld. CIT (A) called for the remand report from the ld. Assessing Officer for this addition and when the ld. AO failed to give any reasons for the same, the ld. CIT (A) deleted the same. We note that in this case, the ld. AO has already added in the liability sites of the balance sheet of Rs. 44.00,02,044/- which comprises of 4 items ..... X X X X Extracts X X X X X X X X Extracts X X X X
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