2016 (2) TMI 307

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....eriod of four years from the ends of relevant assessment year. At the request of the petitioner, Assessing Officer supplied reasons recorded by him for issuing the impugned notice which read as under : "The assessee is engaged in the business of manufacturing and trading of gold, silver, diamond ornaments, metal and precious stones. The assessee company filed its return of income for the AY 201011 on 10/07/2010 deleting total income of Rs. 3,32,65,740/. The assessment was finalised under section 143(3) on 8/2/2013 and determining income at Rs. 3,43,00,670/. A survey u/s. 153A was conducted in the case of assessee on 3/02/2010. As per the survey report two main issues were noted : (1) Unaccounted cash of Rs. 10,34,931/. (2) Diffe....

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....ted and unaccounted/excess stock was estimated at average purchase price. Scrutiny of stock records revealed that the valuation in the stock between physical stock and stock as per books was due to the fact of excess stock of Rs. 26.112 kg of 22 carat gold ornaments valuing to Rs. 4,63,15,560/( at Rs. 1730 per gram) and excess stock of 0.992 kg of 24 carat gold valuing to Rs. 11,16,160/( at Rs. 1130 per gram). The opening stock of 22 carat gold jewellery/ornaments and 24 carat gold as on 142009 was 6204.113 gram and Nil respectively. During the year assessee had purchased 3202.320 kg of 22 carat gold jewellery/ornaments at Rs. 1528.842 per gram and 43500 gram 24 carat of gold (at Rs. 1590.383 per gram) respectively. The contention of the....

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.... 2. Counsel for the petitioner submitted that the entire issue of valuation of purchase of raw material was examined by the Assessing Officer during the original scrutiny assessment. The assessee had pointed out that the purchase price of jewelery cannot be taken on average basis for the recent past which was accepted by the Assessing Officer during the original assessment. In the notice for reopening, the Assessing Officer now wishes to shift the basis of valuation of purchase of raw material which is simply not permissible. 3. On the other hand, learned counsel Shri Mehta for the Revenue painstakingly took us through the materials on record to contend that the basis adopted in the original assessment was completely wrong and that the c....