Case Law Details
HK Dutta & Co Vs ACIT (ITAT Kolkata)
ITAT Kolkata held that making the addition for under valuation of closing stock for not adding making charges specifically for the year under appeal cannot be held to be justified unless and until corresponding adjustment is made for the opening stock. Accordingly, addition deleted.
Facts- The assessee is a partnership firm engaged in the business of manufacturing and sale of gold jewellery through showroom located at Bowbazar and Garia. Return of income, e-filed for Assessment Year 2013-14 on 29/09/2012 declaring income of Rs. 2,31,95,241/-. Case selected for scrutiny through CASS followed by issuing notice u/s 143(2) and 142(1) of the Act. Various additions/ disallowances were made which included disallowance u/s 35(1)(ii) made towards donation given to School of Human Genetics and Population.
Conclusion- Held that the issue stands squarely covered against the assessee by the decision of this Tribunal in the case of Hiralal Bhandari ITO wherein the donations given to School of Human Genetics and Population, have been held as bogus.
Held that making the addition for under valuation of closing stock for not adding making charges specifically for the year under appeal cannot be held to be justified unless and until corresponding adjustment is made for the opening stock. It is also evident that the assessee is consistently maintaining books of account and not including making charges in opening stock. Thus we are of the considered view that the addition of ₹ 339,000/-, is uncalled for and the same is hereby deleted.
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