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Income Tax Appellate Tribunal, : RANCHI BENCH, RANCHI
Before: SHRI S.S.GODARA
Date of hearing 03.03.2020 Date of pronouncement 03.03.2020 O R D E R S. S. Godara(Oral): This assessee’s appeal for assessment year 2006-07 arises against the Commissioner of Income Tax (Appeals), Dhanbad, Jharkhand dated 08.06.2017 passed in case no.102/DHN/2008-09 involving proceedings u/s 143(3) of the Income Tax Act, 1961 (in short ‘the Act’). Heard Shri Poddar, learned authorised representative and Smt. Nisha Singhmarr, JCIT-DR appearing at the Revenue’s behest.
Coming to the former issue of excess stock addition amounting to Rs.5,66,590/-, learned counsel is fair enough in not disputing the same in principle since based on incriminating material found during the course of survey. His only case is that the impugned addition ought to have only qua profit element embedded therein. I find merit in assessee’s instant argument by hon’ble Calcutta high court in PCIT vs. Subarna Rice Mill ITAT 196 of 2015 GA 4047 of 2015 dated 20.07.18 holds that only profit element in case of excess stock addition has to be made. I thus decline the Revenue’s arguments to this limited extent. The Assessing Officer is directed to add a lumpsum amount of Rs.50,000/- as estimated profit addition. It is made clear that instant estimation shall not be treated a precedent. Section 234A and 234B interest shall be computed as per law. M/s Jai Kishan Enterprises 3. Learned counsel is fair enough in not pressing for assessee’s latter substantive ground seeking to delete addition of Rs.33,000/- keeping in mind the smallness of the amount. The same stands affirmed therefore.
This assessee’s appeal is partly allowed in above terms.
Order is pronounced in the open court on 03.03.2020.