2015 (10) TMI 162

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....ing the addition of Rs. 17,13,958/- on account of under valuation of closing stock of gold and silver thereby furnishing inaccurate particulars of stock. [2] On the facts and circumstances of the case and in law the Ld.CIT(A) erred in admitting additional evidences in respect of under valuation of closing stock. [3] On the facts and in the circumstances of the case, the Ld.CIT(A) ought to have upheld the order of the Assessing Officer. [4] It is, therefore, prayed that the order of the CIT(A) may be set-aside and that of Assessing Officer may be restored to the above extent. 2. Ground Nos.1 & 2 are inter-connected and, therefore, the same are decided together. 3. Briefly stated facts are that the assessment u/s.143(3) of the Income Tax....

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....ners and their relatives and the same have been displayed in its shown room. The assessee has placed on record the names and addresses of the persons to whom such gold ornaments belong to, agreements entered into with such persons along with English translation and their wealth-tax returns. He drew our attention towards page Nos.17 & 18, page Nos.19 to 25, page Nos.32 to 43 and page Nos.26 to 31 respectively of the paper book. He submitted that such gold ornaments have been acquired by such persons out of income earned by them. Such ornaments were not required by such persons at the given point of time and, hence, the same were handed over to assessee on the condition that assessee was to act as a custodian of such ornaments and whenever su....

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....of corresponding weight in exchange thereof as per the arrangement. Since no silver was handed over to Popular Jewellers till the year end, no entry was passed in respect of the same. Accordingly no entry was passed in respect of silver ornaments received from Popular Jewellers as well. However, the said fact was categorically mentioned in the audited accounts. He submitted that had there been any doubt in the mind of AO, he could have carried out inquiries with Popular Jewellers as to such arrangement. But, the AO chose to do nothing of that sort. He further submitted that since the assessee was to hand over such silver to Popular Jewellers, it can be construed that assessee was holding the same on behalf of Popular Jewellers at the end of....

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...., the appellant's submission is that it is belonging to partners, their families and relatives, and the same has been kept in the show room for display purposes, and, as it has not been part of the purchase, it has correspondingly not been entered in the stock register, and, accordingly, in the audited balance sheet, it has been separately mentioned. The appellant had before the Assessing Officer also furnished names and addresses of the persons to whom the above gold jewellery belong, along with the quantity of the same and copy of agreement entered into by the owners of the jewellery with the appellant firm and also enclosed copy of wealth tax challans of the persons assessable to wealth tax prior to 1993 wherein, the said gold jewellery ....