TaxTMI 
TaxTMI 
2012 (4) TMI 423
X X X X Extracts X X X X
X X X X Extracts X X X X
....he revenue was in appeal before the Tribunal by virtue of the said ITA 2877/Del/2009, whereas the assessee had filed the said Cross Objection (CO No. 240/Del/2009). 2. According to the appellant, the following questions are important and substantial questions of law and arise for determination by this Court:- (1) Whether learned ITAT erred in deleting the addition of Rs. 1,19,07,201/- made by the Assessing Officer on account of alleged understatement of sale of bullion by invoking the provisions of section 69A of the Income Tax Act, 1961? (2) Whether learned ITAT erred in deleting the addition of Rs. 1,66,571/- made by the Assessing Officer on account of stock written off? 3. The Assessing Officer, while making the assess....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... Consequently, in the year in question, there was a loss of 14.28 kilograms of silver which was only 0.012% of total quantity of silver. 5. According to the Tribunal, the Assessing Officer, while rejecting the explanation given by the assessee, did not make any verification as to whether in the type of trade i.e., wholesale trade in silver, a negligible amount of breakage occurs or not. The Tribunal was of the view that the Assessing Officer merely took the view that the loss in the silver to the extent of 14.28 kilograms represented sales made by the assessee outside the books of accounts. The Tribunal concluded that the Assessing Officer, without any evidence to this effect, could not have reached this conclusion that the sales had bee....
X X X X Extracts X X X X
X X X X Extracts X X X X
....Being aggrieved, the assessee preferred an appeal, as aforesaid, before the CIT (A), who agreed with the submissions made by the assessee and deleted the said addition. The CIT (A) noted that it had been verified by the Assessing Officer that the said Delhi Bullion Association rates were in respect of retail transaction and not in respect of the wholesale trade. It may be pointed out that the assessee was admittedly involved in the wholesale trade and not in the retail trade. Consequently, the CIT (A) held that the Delhi Bullion Association rates were, therefore, not applicable to the transactions entered into by the assessee and, therefore, the same could not have been used for arriving at the conclusion that there was an understatement of....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ts subsidiary in order to so arranged its affairs as to reduce its tax burden and therefore, unless AO on the basis of the material before him was able to come to the conclusion that the assessee has really made profits in the transactions. It was not permissible for him to add back the assessee's return and fictional income. In the background of the aforesaid discussion and precedent, we do not find any infirmity in the orders of the ld. CIT(A) in this regard and accordingly we uphold the same." 10. It is apparent that the Tribunal concurred with the observations of the CIT (A). Another aspect, which has been noted by the Tribunal, was that the lower rates of the Delhi Bullion Association were also comparable with that shown by the asse....