MAA CHHINNA CEMENT AND ISP P LTD,RAMGARH vs. ACIT, CENTRAL CIRCLE-1, RANCHI

ITA 87/RAN/2024Status: DisposedITAT Ranchi20 April 2026AY 2018-196 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that additions based solely on survey statements and stock differences, without credible supporting evidence, are bad in law. Following a coordinate bench decision, the Tribunal found the additions unsustainable.

What were the facts?

During a survey, differences were found in the physical stock of iron ore, fine iron ore, coal, and sponge iron compared to the assessee's books. The Assessing Officer made additions based on these differences and the Gross Profit (GP) of the items. The CIT(A) upheld these additions.

What were the issues?

Whether additions made on account of stock differences found during a survey, without corroborating evidence, are valid. The necessity of credible evidence to support additions made by the Assessing Officer.

Which sections of the Income-tax Act were involved?

Section 133A,Section 143(2),Section 142(1),Section 250

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, – RANCHI BENCH

Before: Shri Sonjoy Sarma & Shri Ratnesh Nandan Sahay

Per Sonjoy Sarma, Judicial Member:

This appeal filed by the assessee is directed against the order dated 05.03.2024 of the CIT(A), Patna passed under Section 250 of the Income-tax Act, 1961 (hereinafter referred to as “the Act”) for the assessment year 2018-19. 2. The sole issue involve in the present appeal of the assessee is against confirming the addition amount of Rs.3,78,80,165/- made on account of difference (shortage and excess) in physical stock found during the survey proceedings on 01.11.2017. Brief facts of the case are income for the asses

The order continues below.

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