1984 (8) TMI 176

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....ience as the issue is common and arise from the consolidated order of the AAC of IT dt. 1st July, 1983. 2. The relevant facts in brief are that the assessee is an individual and derives income from business in silver wares and gold jewellery. The assessment for the asst. yrs. 1977-78 and 1978-79 were originally completed by the ITO under s. 143(1) of the IT Act, 1961. The assessments were origi....

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....r and gold jewellery kept in stock. Consequently, he confirmed the addition made by the ITO for these years. 4. The ld. counsel for the assessee firstly contended that the ITO had no jurisdiction to reopen the assessment under s. 147(b) and, therefore, the AC ought to have cancelled the reassessments on that score. The ITO had no material so as to constitute fresh information and the addition m....

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....s for the asst. yr. 1979-80 and, therefore, the reassessments made were valid in law. Even on merits he supported the orders of the authorities and urged that the additions made should be sustained. 6. We have duly considered the rival contentions and facts of the case. At the outset, we have to observe that the contentions raised by the ld. counsel for the assessee are quite valid and forceful....

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.... as long as they are embedded in the jewellery and remain in stock the increase in value is only notional and not real so as to constitute information for the purpose of taxation. Only when sales are effected commercial profits arises therefrom, and it is well accepted maxim that no one makes profits out of himself. When once the silver wares were manufactured and remained in stock and carried for....