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2008] 303 ITR 199 [2005] 149 TAXMAN 328 (ALL.) HIGH COURT OF ALLAHABAD Commissioner of Income-tax v. Das Industries R.K. AGRAWAL AND RAJES KUMAR, JJ. IT REFERENCE NO. 32 OF 1996 JULY 8, 2005 Section 69B of the Income-tax Act, 1961 - Undisclosed investments - Assessment years 1981-82 and 1982-83 - Assessing Officer found that assessee had shown excess stock of harrow and chauff for assessment years 1981-82 and 1982-83 in balance sheet filed with a bank as compared to balance sheet submitted to revenue - Assessee explained that inflated figures in balance sheet and profit and loss account were shown to get higher credit facility - Assessing Officer rejected assessee's explanation and added difference in stock to assessee's income - Whether since physical presence and accounting of stock was neither certified nor was established and in pursuance of such balance sheet no facilities were given by bank, difference between stock value shown in books of account of assessee and value disclosed to bank was not assessable to tax as deemed income - Held, yes FACTS The assessee-firm derived income from manufacturing and sale of harrow and chauff cutter. A search under section 132 was conducted at the factory and residential premises of the assessee and various incriminating documents and books were seized. The Assessing Officer found that the assessee had shown excess stock of harrow and chauff for assessment years 1981-82 and 1982-83 in the balance sheet filed with a bank as compared to the balance sheet submitted to the revenue. The assessee submitted that the inflated figures were shown to get the bank credit facility. The Assessing Officer rejected the explanation and added the difference in the stock to the assessee's income for the relevant assessment years. On appeal, the Commissioner (Appeals) deleted the additions. The Tribunal upheld the order of the Commissioner (Appeals) and held that there was no reason to disregard the version of the assessee as the physical presence and accounting of stock was neither certified nor was established. On reference : HELD In the instant case, the Commissioner (Appeals) and the Tribunal found that though the balance sheet was…

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