| |
| The Tax Publishers2020 TaxPub(DT) 4509 (Chd-Trib) INCOME TAX ACT, 1961
Section 132
Institution of Civil Suit by assessee against M/s. PBR Agro from whom assessee had taken a godown on rent for storing the stock, acceptance of liability by M/s. PBR Agro substantiated the fact of misappropriation of stock by M/s. PBR Agro as contended by assessee, therefore, explanation of assessee for shortage of stock was bona fide and addition made to income of assessee by treating shortage of stock as sales outside the books was deleted.
|
Search and seizure - Addition to income - Shortage of stock treated as unaccounted sales - Assessee filed supportive evidences
During the course of search at assessee's premises, stock was found short. AO treated shortage in stock as sales made outside the books of assessee. Assessee, explained that shortage related to stock which had been misappropriated by M/s. PBR Agro Industries from whom assessee had taken a godown on rent for storing the stock. Held: Institution of Civil Suit by assessee against M/s. PBR Agro for misappropriation, the acceptance of liability by M/s. PBR Agro in the MOU signed with assessee and the issuance of cheque of Rs. 62 lacs in part discharge of liability, all substantiated the fact of misappropriation of stock by M/s. PBR Agro as contended by assessee, therefore, explanation of assessee for shortage of stock was bona fide and addition made to income of assessee by treating shortage of stock as sales outside the books was deleted.
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2017-18
INCOME TAX ACT, 1961
Section 68
 SUBSCRIBE FOR FULL CONTENT
|