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TaxTMI 
TaxTMI 
TaxTMI 
2016 (9) TMI 1354
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....e under the head 'Income from Business' ignoring the decision of the Hon'ble Gujarat High Court in the case of Fakir Mohd. Hazi Hasan 247 ITR 290 that unaccounted income ought to be categorized under the residuary head of 'Income from other Sources.' 2. On the facts and in the circumstances of the case, the CIT (A)-2, Udaipur has erred in deleting the addition of Rs. 35,06,099/- made on account of change in method of valuation of closing stock ignoring that the stock was valued at the cost price by the assessee to reduce the profit in the year of survey, while the stock was valued at the market price by the assessee in all the other previous years. 3. On the facts and in the circumstances of the case, the CIT (A)-2, Udaipur has erred in....
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.... The Assessing Officer also made addition on unexplained registration expenses. The assessee aggrieved by this order, preferred an appeal before ld. CIT (A), who after considering the submissions allowed the appeal. 3. Now the revenue is in appeal before us. 4. The first ground of revenue's appeal is against the direction of ld. CIT (A) to the AO to assess the unexplained investment by the assessee under the head Income from business. 4.1. The ld. D/R submitted that the ld. CIT (A) grossly erred in directing the AO to assessee the income surrendered by the assessee under the head Income from Business. He submitted that ld. CIT (A) has not followed the judgment of the Hon'ble Gujarat High Court rendered in the case of Fakir Mohd. Hazi Has....
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....s where source of investment/expenditure is clearly identifiable and alleged undisclosed asset has no independent existence of its own or there is no separate physical identity of such investment/expenditure then first what is to be taxed is the undisclosed business receipt invested in unidentifiable unaccounted asset and only on failure it should be considered to be taxed under section 69 on the premises that such excess investment is not recorded in the books of account and its nature and source is not identifiable. Once such excess investment is taxed as undeclared business receipt then taxing it further as deemed income under section 69 would not be necessary. Therefore, the first attempt of the assessing authority should be to find out....
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.... addition. He supported the order of the AO. 5.2. On the contrary, the ld. Counsel for the assessee supported the order of ld. CIT (A) and submitted that there is no illegality in the order of ld. CIT (A). He submitted that the reasoning in paras 6 to 6.2 of the order of ld. CIT (A) is self explanatory. Therefore, he submitted that there is no reason to interfere in the order of ld. CIT (A). 5.3. We have heard rival contentions and perused the material available on record. We find that the ld. CIT (A) in para 6 to 6.2 has decided the issue by giving finding of fact as under :- "6. I have considered the facts of the case, gone through the assessment order, submission of the ld. AR and the various case laws relied upon. The only dispute i....
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....Y 2007-08 to 2009-10 held that the appellant who was dealer of precious metal like gold and silver and previously adopting the method of valuation of closing stock at market rate but the changed the same to weighted average cost price for which bona fide reasons exist considering the fluctuation in the rates, the same needs to be accepted. Considering all these facts I find that the change in the method of valuation of the stock is bona fide. Accordingly, the addition made by the AO is deleted." The above finding of fact is not disputed by the revenue by placing any contrary material. We find that the assessee has been consistently following the method subsequently. Therefore, we do not see any reason to interfere in the order of ld. CIT ....