TaxTMI 
TaxTMI 
2014 (7) TMI 602
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.....620 gms 111.493 Kg 4. The assessee was required to give the details of stock of gold and silver ornaments as per its books of account on 05.03.2008. The details submitted by the assessee were as under: Details Gold Silver Opening stock Less: Sale from 01.04.2007 to 05.03.2008 16701/861 Gram (-) 4081/660 Gram 83320.029 gram 11648.000 gram Total closing stock of old ornaments 12620/201 gram 71672.029 gram Add: purchase of gold from 01.04.2007 to 05.03.2008 6712/337 gram 35244.300 gram Total stock as per books 19332/578 gram 106916.329 gram Value: Gold 12620/201x850/- (Old stock) 6712/377x11125/- (New stock) Rs. 10730069/- Rs. 7467519/- Silver Rs. 1669070/- The above details of stock as per books were given in a signed statement of Ramji Patel, partner of the assessee firm. Thus, the Assessing Officer noticed that there was difference in stock of gold and silver as physically found and as shown in the books of account as under: Details Gold Silver Stock actually found as on 05.03.2008 21610.620 gms 111.493 Kg Book stock as per sales & pu....
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....affidavits of concerned persons. The Assessing Officer in the assessment order has tabulated the same as follows: S.NO Name .of the person from whom received Gold in grams Silver in gms Date of receipt of such goods from the persons 1 Nareshbhai Ramsunghbhai Chaudhary 75.740 14/02/2008 2 Nanjibhai Narsangbhai Judal 238.000 23/02/2008 3 Devjibhai Ratubhai Samodiya 119.360 16/02/2008 4 Nareshbhai Virsangbhai Chaudhary 27.170 03/03/2008 5 Satishkumar P Mevada 33.070 22/02/2008 6 Hirjibhai Hemrajbhai Valaganth 142.560 27/02/2008 7 Shamlabhai Dhanrajbhai Patel - 658 01/03/2008 8 Smt. Surajben Jesungbhai Fof 476.590 20/02/2008 9 Baldevbhai Narottambahi Soni 409.760 16/02/2008 10 Rameshbliai Pafthibhai Chaudhary 105.460 18/02/2008 11 Smt Manjulaben Laxmanbhai Patel 650.330 23/02/2008 12 Vasrambhai Laxmanbhai Ratda 1791 25/2/2008 13 Devabhai Laljibhai Fof 1089 28/02/2008 14 Sardarbhai Laxmanbhai....
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....n by the assessee is as under: 1 2 3 4 5 6 7 8 9 10 11 12 S.No Name and address of the person who had given old gold/ silver for work Whether the person is covered u/s 40A(2)(b) Details of gold/silver received for work with weight Date of receipt Name of person to whom the said gold/silver given for work Date when given Date when received back Amount paid. With date. Details ofTDS Rate per gram at which work done Date of return of such gold/silver ornaments Amount received against such job work 1 Nareshbhai Ramsangbhai Chaudhary No Sona Har 75.74 14/02/2008 Usmanbhai Momin (Bangali) 14/02/2008 13/03/2008 27/03/2008 Rs. 8105 130 13/03/2008 9843 2 Devjibhai Ratubhai Samodiya No 55.630 20.990 42.740 16/02/2008 16/02/2008 16/02/2008 Rameshbhai Harjibhai Patel Ratanbhai Bangali Ketanbhai Ramanlal Soni 16/02/2008 16/02/2008 16/02/2008 10/3/2008 10/3/2008 10/3/2008 20/03/2008 Rs. 7784 24/03/2008 Rs. 2860 22/03/2008 Rs. 2860 100.00 100.00 100.00 10/3/2008 10/3/2008 10/3/2008 5560.00 2098.00 4270.00 11. The Assessing O....
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....ever was found which supports the claim of the appellant that gold and silver were received from customers for remaking/remodeling of ornaments. Even the slips relating to receipt of ornaments from customers were not found at the business premises. At the time of survey the partner of the appellant firm Shri Ramjibhai Patel admitted that excess quantity of gold and silver were the undisclosed income of the appellant firm which had not been recorded in the books of accounts. Though the appellant retracted the disclosure made by Shri Ramjibhai Patel after the survey, it is clear that such retraction was an afterthought because even during the assessment proceedings the appellant has not .been able to satisfactorily explain the excess gold and silver found at the business premises. During assessment proceedings the appellant produced receipts from customers to evidence that gold and silver was received from them for remaking / remodeling however from the submissions filed before he AO it is seen that such gold or silver received was immediately issued to karigars for job work to be done. The explanation offered by the appellant has been made a part of the assessment order. The AR of t....
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.... difference in stock in gold and silver was unaccounted income of the assessee. Accordingly, the unaccounted stock of gold 2278.048 grams was valued at Rs. 25,34,322/- and the difference in silver of 5.577 kgs. was valued at Rs. 70,028/- and thus a total addition of Rs. 26,04,350/- was offered to tax over and above the regular income of the current year. The partner Shri Ramjibhai Patel assured of making payment of advance tax of Rs. 8,04,000/- and paid Rs. 4,00,000/- as advance tax on 15.03.2008. However, in the return of income filed for the assessment year 2008-09, the income was shown at Rs. 16,369/- only. The assessee explained before the Assessing Officer during the course of assessment that the excess stock found of gold and silver ornaments was received from different persons for converting it into new ones and filed affidavits of all concerned persons. The Assessing Officer found that the gold and silver ornaments were given to the assessee by the persons for job work and that as per the details submitted by the assessee, from the date of survey the jewellery were not lying in the business premises of the assessee and hence the total physical stock found during the course ....
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....h was recorded at the time of the survey was not produced before us to rebut the above contention of the Assessing Officer. Copy of inventory prepared at the time of survey was also not produced before us by the assessee to point out therefrom that such inventory included the goods received from customers for remaking or remodelling. The Commissioner of Income Tax (Appeals) pointed out that in the affidavits of the karigars it is not stated that they carried out work of repairing/remodelling at the premises of the assessee and kept such goods at the premises of the assessee. We find that no material was brought before us to controvert the above point highlighted by the Commissioner of Income Tax (Appeals). In absence of any such material, we do not find any good reason to interfere with the orders of the lower authorities. Therefore, this ground of appeal of the assessee is dismissed. 15. Ground no. 2 of the appeal of the assessee is directed against the order of the Commissioner of Income Tax (Appeals) confirming the disallowance of labour payment of Rs. 66,459/-. 16. The brief facts of the case are that the Assessing Officer observed that the assessee claimed that excess st....
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....presumption. In view of the fact that some of the Karigars have stated that they were employees of the appellant and were not doing job work for him, the entire labour charges paid may not be correct. In view of the fact that the appellant has received labour charges of Rs. 4,49,043/- it is held that the labour charges paid would be 50% of the same whether it is called salary or labour payment. Thus the expenses on labour would be Rs. 2,24,522/-. The addition made by the Assessing Officer is hence reduced from Rs. 2,90,981/- to Rs. 66,459/-." 18. The Authorized Representative of the assessee reiterated the submissions made before the lower authorities whereas the Departmental Representative supported the orders of lower authorities. 19. We find that it is not in dispute that the assessee has shown receipt for labour charges of Rs. 4,49,043/- which was accepted by the Assessing Officer as income of the assessee. Thus, to hold that no labour charge expenses were incurred for earning the said labour charges income is not justified without cogent material. Further, the Commissioner of Income Tax (Appeals) allowed labour charge expenses at the rate of 50% of ....
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....e appellant has not deducted TDS. Thus the appellant has contravened the provisions of section 40(a)(ia) of the I. T. Act. The contention of the AR of the appellant that the appellant was free to approach other persons for getting the ornaments hallmarked is not relevant. It is seen that the aggregate of payments made to Gujarat Gold Centre exceeds Rs. 50,000/- during the year. In view of the above the appellant was required to deduct TDS from the payments made to Gujarat Gold Centre. In view of the above, the addition made by the Assessing Officer is justified. The same is confirmed." 25. The Authorized Representative of the assessee reiterated the submissions made before the lower authorities whereas the Departmental Representative supported the orders of lower authorities. 26. We have heard the rival submissions and perused the orders of lower authorities and material available on record. The undisputed facts of the case are that in the instant case, the assessee has debited Rs. 1,08,646/- in the profit and loss account under the head "hallmark checking expenses". The Assessing Officer observed that the assessee has made payment of Rs. 75,601/- to Gujarat Board Centre and ....
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....oks of account as follows: Details Gold Silver Opening stock Less: Sale from 01.04.2007 to 05.03.2008 16701/861 Gram (-) 4081/660 Gram 83320.029 gram 11648.000 gram Total closing stock of old ornaments 12620/201 gram 71672.029 gram Add: purchase of gold from 01.04.2007 to 05.03.2008 6712/337 gram 35244.300 gram Total stock as per books 19332/578 gram 106916.329 gram Value: Gold 12620/201x850/- (Old stock) 6712/377x11125/- (New stock) Rs. 10730069/- Rs. 7467519/- Silver Rs. 1669070/- From the above, the Assessing Officer observed that the assessee till 05.03.2008 had not sold a single gram of new gold purchased by it during the year. The assessee had shown sales out of only old ornaments. He observed that the balance sheet as on 31.03.2008 submitted by the assessee alongwith audit report in form no. 3CD was perused and found hat from the said balance sheet, the assessee has shown closing stock of old gold at 12620.801 grams which implies that after 05.03.2008, no gold have been sold by it. The stock of new gold ornament was shown as 55575.268 grams. This implies that after....