1986 (12) TMI 86

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....st. yr. 1981-82 wheras the assessee's agitation is that addition of Rs. 21,405 on account of closing stock under valuation should not have been upheld, the revue agitates relief of Rs. 46,888 out of the addition of Rs. 68,294 made in the assessment in relation of trading results. 2. The assessee, an individual was enjoying income from purchase and sale of gold ornaments. The purchases were stat....

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....on the last day of the accounting year which was31st March, 1981. The sales were stated to be not supported by vouchers and further according to the assessing officer, the assessee had not accounted for the stones studded in ornaments purchased. 3. The AAC accepted the contention that there is no variation in the opening stock after observing that though gold-smiths were produced before the ITO....

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....Stones. The other stones do some time come with the ornaments purchased by him, but that the same are of an ordinary variety and their value is negligible. Further, that there cannot be re-used for making new ornaments as they get burnt in the process of re-making. The explanation of the learned counsel appears to be acceptable. 5. The first appellate authority however, upheld the assessing off....

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....accept the trading account as far as quantity of gold in concerned. The ITO however, rightly investigated the valuation of the closing stock because the assessee's version of valuation at cost was clearly wrong considering the quantity sold and this can be demostrated from the figures available from the records maintained as follows: "Asst.yr   1979-80 1980-81 1981-82 Openin....