Addition on account of stock received for Job work as unexplained stock is not permissible – ITAT

Brief of the Case ITAT Ahmadabad held In the case of ACIT vs. M/s. Vipan Industries that where there are records available to show that the excess stock found during the survey not belong to the assessee but infact was of the other party who has taken said premises on lease, addition is not justified. It is clear in the current case that the job work stock of Rs.2,91,96,630/- pertains to M/s Colourtex Pvt. Ltd. Facts of the Case The assessee is a firm and member of Colourtex Group of Surat. A search under section 132 of the Income Tax Act was carried out at the Colourtex Group of Surat and its...