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| The Tax Publishers2021 TaxPub(DT) 0838 (Ctk-Trib) INCOME TAX ACT, 1961
Section 145
Addition made by AO on account of unexplained closing stock found on the date of survey could not be held as unjustified as assessee had agreed before the survey team that there was excess stock and advance tax was also paid by assessee.
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Accounting method - Unexplained Closing Stock - Addition made by AO, towards difference between actual value of stocks -
AO had made addition on account of unexplained closing stock found on the date of survey on the basis of discrepancy of the actual stock and the stock as recorded in the books of account of the assessee.Held: It was not disputed that the assessee had agreed before the survey team that there was excess stock and advance tax was paid by the assessee. The contention of the assessee that subsequently the stock was found tallied with its books of account was an after-thought and no evidence in this regard was produced before the lower authorities immediately after the survey. The survey was done in the presence of the assessee and hence, it cannot be alleged that the assessee was forced to sign the recorded statement. Thus, no infirmity could be found in the order of AO.
REFERRED :
FAVOUR : Against the assessee.
A.Y. : 2012-13
IN THE ITAT, CUTTACK BENCH
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