Sandee Impex vs. Asstt CIT

Parties Involved

Facts Summary

This appeal is preferred by Sandee Impex against the order of the Commissioner of Income-Tax (Appeals)- 25, New Delhi, dated 18.02.2020. The assessee has challenged the appellate order on several grounds, primarily concerning the addition of Rs. 43,88,755/- made by the Assessing Officer (AO) on account of the difference between the physical stock and the stock position submitted to the bank. The AO had confirmed the addition, leading to the present appeal. During the survey under section 133A of the Act on 17.03.2015, the stock submitted to the bank was valued at Rs. 1,47,96,000/-, whereas the physical stock found was valued at Rs. 60,87,362/-. The AO made an addition of Rs. 43,88,755/- as the difference between the stock submitted to the bank and the stock found during the survey. The assessee argued that the stock valuation given to the bank is usually inflated to avail larger bank limits and that the stock as per the books of account should be considered.…

Legal Issues

• 1. Whether the order passed by the Ld. Commissioner of Income Tax (Appeals) is bad both in the eye of law and on facts.
• 2. Whether the Ld. CIT(A) erred in confirming the addition of Rs. 43,88,755/- on account of the difference in stock valuation.
• 3. Whether the Ld. CIT(A) erred in confirming the 10% adhoc disallowance on various expenses.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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