Law:

Section:

Section 143, read with section 260A, of the Income-tax Act, 1961 - Assessment - Additions to income - During search conducted at assessee's premises, raw materials was found in excess - During assessment, assessee submitted a stock register explaining difference in excise register and stock register due to excess raw material found which was in process of manufacturing - As no stock register was produced during search, Assessing Officer added value of stock which was reduced by Tribunal - Whether question as to whether there should be addition on account of excess stock found during search or not was basically a question of fact - Held, yes - Whether, further, since stock found in excess was not explained at time of search and Tribunal had already given substantial relief by reducing addition no case was made out for admission of appeal - Held, yes FACTS During the search conducted at the assessee's premises 12 tanks raw material was found in excess. No stock register was submitted during the search. Thereafter during the course of assessment, the assessee submitted a stock register explaining the difference in the excise register and stock register due to the excess raw material found, which was in the process of manufacturing. As no such stock register was produced during the search, the Assessing Officer added the value of stock. On appeal, the Commissioner (Appeals) deleted the amount accepting the figures given in the stock register. On appeal before the Tribunal, the Tribunal reduced the addition made on account of excess stock found during the search. On appeal under section 260A: HELD Whether there should be addition on account of excess stock found during the search or not was basically a question of fact especially when no stock register was produced during the search when the question was put for that excess raw material, which was found, how that excess stock was available with the assessee. It was only the excise register, which was produced and in that there was no reference of such raw material, which was in the process of manufacturing because in excise register, such type of raw material could not be shown. Considering the fact that the issue…

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