TaxTMI 
TaxTMI 
2021 (7) TMI 505
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....45,97,325/- on the basis of valuation report by Govt. approved valuer without taking into consideration 'material facts' containing 'material particulars' already on record. 3. Because the action is being challenge on the facts & law, for disallowance of interest amounting to Rs. 1,08,000/- on loan borrowed u/s 36(l)(iii) on an account of non-business purpose. 4. Because the action is being challenge on the facts & law, for making disallowance of interest paid on delay in deposit of TDS amounting Rs. 704/- on account of penal nature". 2. The facts in brief are that the assessee is engaged in the business of retail trading of jewellery in his proprietorship concern, M/s. Akash Jewellers. A survey operation u/s.133A was carried out on 13.09.2011 at the business premises of the assessee, and accordingly, the assessee's case was selected for scrutiny and notice u/s. 143(2) was issued on 13.09.2013. The ld. Assessing Officer observed that during the course of survey operation, books of account maintained by the assessee, sale purchase details and vouchers were examined and inventories of physical cash and stocks found at the business premises were pr....
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.... 469420.16 197.72 2374.166296 Sep, 2011 490210 200.85 2440.677122 Oct, 2011 4891483.52 1959.71 2496.024167 Oct, 2011 2654556 1135.59 2346.405714 Nov, 2011 3866755.02 1489.58 2595.869319 Nov, 2011 5618429 2002.83 2805.245078 Dec, 2011 3005072.4 1148.814 2615.804125 Dec, 2011 1317440 489.97 2688.817683 Jan, 2012 7616220.18 2979.857 2555.901233 Jan, 2012 11006948 4289.85 2565.811858 Feb, 2012 6176331.04 2367 2609.349827 Feb, 2012 14168315 5107.575 2773.980803 March, 2012 8731903.28 3445.933 2533.973609 March, 2012 6468180 2763 2340.998914 Perusal of the above table (Average Cost Price} reveals that the price/gm of the gold shown by the appellant for opening stock as on 01.04.2011 is Rs. 2257.37/-. However, it significantly dipped during the next four months and hovered around is. 1828/-, It again increased just before the month of survey and went up to Rs, 2475/- in the month of August 2011, After....
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....,17,34,078/- 15989.665 gm Rs. 2610.06/- From the perusal of the above table, the rates of gold per gm shown by the appellant can be bifurcated into two periods, one pre-survey and another post- survey. From the table it can be seer* that there is huge differs rite m the price per gm of the polo purchased by the appellant before the date of survey end after the date of survey. Before the date of survey, the weighted price per gm of the gold shown by the appellant comes to Rs. 1941/- which further dipped to Rs. 1854/- if the opening stock is excluded from the total stock as on 13.09.2011 which has been valued at Rs, 2257/- per gm by the appellant. Whereas the rates of gold per gm purchased by the appellant after the date of survey i.e. 13.09.2011 comes to Rs. 2610/- and the difference between these two rates comes to Rs. 756/- per gm. Further, the appellant in its written submissions has stressed upon two more points that (t) the value of stock as on the date of survey made by it at Rs. 1,23,00,000/- was just an estimation and can't be taken as sacrosanct, and (llj the rates of the gold fluctuated tremendously during the A.Y. However, perusal of page 3 of ....
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.... 1932/- 2 May, 2011 1939/- 2180/- 1962/- 2223/- 2000/- 3 June, 2011 1841/- 2201/- 1981/- 2239/- 2015/- 4 July, 2011 2031/- 2244/- 3020/- 2251/- 2026/- 5 Aug.,2011 2610/- 2569/- 2312/- 2563/- 2307/- 6 Sep, 2011 2590/- 2711/- 2440/- 2691/- 2422/- 7 Oct, 2011 2488/- 2644/- 2380/- 2681/- 2413/- 8 Nov., 2011 2941/- 2832/- 2549/- 2815/- 2S33/- 9 Dec., 2011 2846/- 2756/- 2481/- 2800/- 2520/- 10 Jan., 2011 2872/- 2719/- 2447/- 2768/- 2491/* 11 Feb., 2011 2935/- 2750/- 2475/- 2823/- 2541/- 12 March, 2011 2484/- 2714/- 2442/- 2788/- 2509/- There is » variation of 1.1% between the prices of two different sources which Is acceptable en the size of the gold market in India. This analysis makes one thing dear that figures shown by the appellant can't be relied upon. Hence the appellant's calculation of stock at Rs. 1,....
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.... there was difference between the statement given by the assessee wherein he has given estimation of the stock and the stock as valued by the valuer at the time of survey. But for the difference in value, there is no difference in the quantitative details, i.e., whether any excess quantity was found at the time of survey which was not recorded in the books of account. The base for valuation of stock has been taken at Rs. 1,23,00,000/- which was stated to be estimate value of the stock with the assessee in his statement during the course of survey. This was an approximate estimate given by the assessee at that time. Now the addition is on account of difference between estimated values declared in statement at the time of survey at Rs. 1,23,00,000/- and the valuation done by the valuer. 8. Admittedly, there is no difference in the quantitative tally or any discrepancy in purchase and sales or any excess quantity of jewellery was found so as to draw any adverse inference. Albeit the addition is based on the statement given by the assessee in respect of stock value at the time of survey and even in the statement there is no reference of excess quantitiy. Before the Ld. CIT (A), the ....