No addition for inflated statement of stock submitted to banker when no discrepancy was found in physical verification and books of account-High Court uphelds ITAT Decision
ABCAUS Case Law Citation:
ABCAUS 2134 (2017) (11) HC
The appellant assessee was a sole proprietor involved in the business of sale and purchase of foodgrains on commission basis. The Assessing Officer (AO) made a substantial addition for difference and discrepancy in the stock as per books and statock statement submitted to banker. The AO was of the opinion that the addition was justified on account of the discrepancy.
The Commissioner Appeals was satisfied with the assessee’s explanation with respect to inflated statement of stock with the bankers and noted that no discrepancy in the stock statements as appearing from the physical verification and that apparent from the books of account emerged. The amount was, therefore, deleted.
The ITAT upheld the findings of the CIT(A).
The Revenue challenged the order of the ITAT before the High Court.
The High Court opined that in view of the concurrent findings of fact, no substantial question of law arose as the issue pertained to pure appreciation of facts.
The appeal was dismissed