Ramesh Poonamchand Bansal Vs ITO (ITAT Surat)
ITAT Surat held that addition of unexplained stock as unexplained investment u/s. 69 of the Income Tax Act upheld due to claim of closing stock was not supported by any verifiable evidences. Accordingly, ground of appellant dismissed.
Facts- During scrutiny assessment, AO found that there were sundry creditors of Rs.1,26,33,360/-, for which the assessee could not furnish proper details and evidences. He also issued notices u/s 133(6); however, majority of the notices were returned unserved. In response to the final show cause notice, the assessee did not file any reply. Hence, he added Rs.1,26,33,360/-. Further, the assessee has also shown opening stock of Rs.68,07,172/- as on 01.04.2012. However, the closing stock on 31.03.2012 was Rs.Nil. The assessee did not file any reply to the query on the above issue. Therefore, AO added the same as unaccounted stock of the assessee. AO also added Rs.1,41,808/- by making disallowance of claim u/s 24(b) of the Act.
CIT(A) partly allowed the appeal. Being aggrieved, the present appeal is filed.
Conclusion- Held that the disallowance @ 6% has been confirmed by the Hon’ble jurisdiction High Court in case of PCIT vs. Surya Impex (2023) 148 taxmann.com 154 (Guj). Respectfully following the above decisions, we direct the AO to restrict the addition to 6% of total creditors of Rs.1,26,33,360/- i.e. Rs.6,31,668/- instead of Rs.15,86,728/- sustained by the CIT(A). The ground is partly allowed.
