TaxTMI 
TaxTMI 
2014 (4) TMI 859
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....jection was raised by the assessee at the time of search when inventorisation of stock took place? 2.Whether on the facts and in the circumstances of the case, the Income Tax Tribunal was right in restricting the addition made on account of investment in excess stock of gold jewellery amounting from Rs.1,44,53,361/- to Rs.4,92,364/-. 2. The assessee is a partnership firm engaged in retail business of gold and diamond jewellery, silver wares, stainless steel articles and furniture and home appliances. A search operation was conducted by the Investigation Wing of the Department on 19.02.2003. According to the Revenue, during this search at 25 NSC Bose Road, Trichy, they seized 24,992.885 grams of gold ornaments on 19.02.2003, but no boo....
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....ts, it gave the explanation thereon in detail and this was considered by the First Appellate Authority. Going by the detailed explanation given, the First Appellate Authority restricted the addition to a sum of Rs.4,92,395/-, holding that the claim of the assessee was not properly appreciated by the Assessing Officer. The Income Tax Appellate Tribunal referred to the remand report from the Assessing Officer which dealt with the various additions. After going through the remand report as well as the consideration by the Commissioner's report, the Income Tax Appellate Tribunal pointed out that the assessee had received gold jewellery for repair from the customers as well as for re-making and after receipt of these items, they were finally....
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.... approval voucher No.069, dated 17.02.2003; after approval by the sale bill No.641, dated 21.02.2003 for an amount of Rs.33,92,306/-; the photo copies of the document were filed before the Assessing Officer and there was a search enquiry was made in M/s.Prakash Gold Palace, Chennai and the clarification given and the explanation therein was accepted by the Commissioner. Considering the materials thus made available and the enquiry made by the department, the exclusion of jewellery weighing 5839.250 grams was held proper and justifiable. 5. As regards the gold jewellery item, the Income Tax Appellate Tribunal pointed out that the degree of error found in the weighing scales, warranting a reasonable deduction of 5% was rightly given by the....
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....Tax Appellate Tribunal pointed out that there was an incorrect weighment of silver articles. The available scales could weigh articles only upto 6kgs at a time, whereas the serial numbers of the inventory list of the silver articles indicated the weight of items far exceeding the said upper limit. Going through the relevant bills as regards the purchase of silver articles weighing 469.739 grams and the evidence of payments through demand draft drawn on Karur Vysya Bank Ltd., the stock issued and received back from silversmith inclusion of wrappers of plastic and paper while weighing, the Income Tax Appellate Tribunal held that the Commissioner of Income Tax (Appeals) had correctly given an estimated weight relief in this regard. Consequentl....