Without physical verification, additions cannot be made for stock register discrepancy

Ankur Cm Food Products (Guj) Ltd. Vs Dy. CIT (ITAT Rajkot)- Ground No.2 of appeal of revenue is in respect of deletion of addition of Rs.7,01,1 19 on account of excess stock of packing material. During the course of survey at factory premises empty bags and empty pouches numbers 1,02,98,914 were found against the book stock of 83,39,051. There was excess stock of packing material of 19,59,863 pouches valuing Rs. 7,01,119. In the statement, Shri Ashok Parekh, director of the company while answering question No.3 9 stated that packing material of outside parties for which the assessee is doing j...