9911796707
TMI Blog2003 (9) TMI 285X X X X Extracts X X X X X X X X Extracts X X X X ..... for the assessee. Therefore, the same are dismissed. The ground Nos. 4 and 5 pertaining to the common issue, are as under: "Because the addition of Rs. 1,80,526 as unrecorded sales, on account of so-called difference in stock as per inventory prepared during search and as worked out from account books in asst. yr. 1996-97 is wrong, illegal and unjust. The AO has totally ignored the appellant's submission for the said difference." "Because the stock as per inventory prepared during search is less than the stock as worked out from account books and for such difference no addition can be made. Moreover, the stock inventory during search was prepared in great hurry and on estimated basis." 3. The facts of the issue are that search and sei ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uring the course of hearing before us, the learned counsel for the assessee reiterated the same arguments taken before the AO. It is submitted that vide letter dt. 25th Sept., 1996, the assessee intimated to the AO that there were hundreds of items of different sizes and prices. In the stocktakings, the items of different sizes are taken at one place and the prices have also been taken in round figures. Instead of making inventory of various items, it has been mentioned miscellaneous damages items at about Rs. 30,000 while the question of damaged items does not arise in their shop. All the items are saleable items. The difference in the value of stock as worked out from the account books and as worked out during the search is due to the fac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed, as income has come in the trading account, as the total of both the sides of the trading account do not tally while they must tally as per the trading account prepared by the assessee. All the other figures are accepted figures. Hence, the so-called unrecorded sales cannot be undisclosed income. If Rs. 1,80,526 is not taken on the debit side, the trading account will not tally. It is also submitted that in the assessment order of M/s Basdeo Prasad Sons Tobacconist made under s. 158BC on the same date, no addition has been made for the negative stock. In support of his submission, the learned counsel cited the decision of Tribunal, Chandigarh Bench, in the case of Saqi Bros. vs. ITO (1996) 54 TTJ (Chd) 306, wherein it is "held that no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... party, though the assessee could not make any objection about the inventory made and value adopted by the search party. But we simultaneously cannot overlook the factual position. The assessee in his paper book filed copy of inventory prepared by the search party. We noted that the value has been taken mostly in round figures, which cannot be in practice. We also noted that at the end of the entry, the miscellaneous damaged items were estimated at about Rs. 30,000 while the assessee has claimed that no damaged items are retained or kept. We also rely on the decision of Tribunal, Chandigarh Bench, that no addition in regard to the unaccounted sales can be made on the basis of negative stock found by the AO by preparing the trading account in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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