TaxTMI 
TaxTMI 
2021 (2) TMI 273
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....tice that assessee's appeal ITA No. 238/Hyd/2019 suffers from delay of 291 days as attributable to misplacing of appeal papers by one of the office staff, is condoned since the same is neither intentional nor delinquent on the part of the assessee but for the circumstances beyond its control. The appeal ITA No. 238/Hyd/2019 is taken up for adjudication on merits. 3. Coming to the rival pleadings in these cross-appeals, we notice during the course of hearing that the Revenue's sole endeavour is to revive the challenge correctness of the CIT(A)'s action reversing excess gold addition of Rs. 2,33,15,262/- whereas the assessee's identical grievance upon silver ornaments/excess stock involves a sum of Rs. 17,29,072/- confirmed....
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....tion to the department. During the course of appellate proceedings, the AR of the appellant drawn to my attention the reconciliation of statement of gold given to the AO at the time of survey, wherein the book stock was arrived at 61994.720 gms. During the course of appellate proceedings, AR of the appellant also drawn to my attention the sworn statement u/s. 131 of the Act on 21.6.2011, given by Sri P. Navarathan S/o. Sri Prakash Chand, a partner of the Firm. I have perused the reconciliation of book stock worked out by the appellant vide their letter dated 21.6.2011, which is part of the survey record mentioning about 9434 pieces, and weighing 61994.720 gms. I have also perused the replies given by Sri P. Navarathan in the course of state....
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.... As per the stock register, stock of old gold was to the tune of 6781.757 grams but on the verification physically, no old gold is found. Further, there are no outward entries in the old gold register and inward entries in gold ornaments register. Please explain? Ans.) As replied to the question No. 4, no entries were made since our accountant Mr. Nagaraju fell sick. I have maintained kacha worksheets and receipts for inward and outward transactions and I will produce the same within 2 days. Q.8) Please furnish the names and addresses of the workers to whom the bullion and old gold was stated to have been issued for making gold ornaments and also stated to have been received gold ornaments. Ans. 1) Sri Siva Achari....
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....on is done according to material available on the date of survey action after including these items, the difference in the stock of gold comes to a difference of 196.17 gms only. Even this difference could be due to mistakes in the net weights of stones. The survey record shows that the valuation of the physical stock i.e. inventory of stock was also not done with the help of Registered Valuers. Hence, small difference of 196.17 gms can be attributable to the lack of involvement of experts like registered valuers in the process of taking inventory. It is pertinent to mention that the appellant had declared Rs. 10 lakhs as additional income and paid taxes to cover up discrepancies, which will take care of difference of 196.17 gms also. In vi....
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....ver ornaments of Rs. 17,29,072/-. Mr. Murali Mohana Rao submitted before us that both the learned lower authorities have not taken note of the fact that the assessee had declared a lumpsum profit amount of Rs. 10 lakhs during the course of survey (supra). He therefore seeks to delete the impugned addition in entirety. His further case is that the assessee had never made any concession before the CIT(A) for not pressing its instant grievance. 4.1. We see no merit in the assessee's grievance per se in entirety. The fact remains that it has not been able to explain each and every item in both gold as well as silver stock(s). We notice that it has placed on record a detailed reconciliation statement of both stocks of gold as well as silv....