On appeal, the High Court held that, when there is a finding of fact that on the basis of the physical verification, a difference was found in the goods with the assessee, Tribunal cannot be said to have erred in sustaining such additions made as it was not solely basis a retracted statement of employees but basis the physical verification of stock. There being no other material to prove to contrary, restriction of addition to a sum of Rs.10 lakhs by way of estimate and preponderance of probability cannot be said to be arbitrary and illegal (ITA No.4 of 2016 dt. 16-01-2019) (AY. 2007-08)
Omprakash Kukreja v. ACIT (2019) 308 CTR 68 / 176 DTR 244 (MP)(HC)
S. 69 : Unexplained investments–Excess stock-Restriction of addition to a sum of Rs. 10 lacs by way of estimate and preponderance of probability cannot be said to be arbitrary and illegal.