2023 (3) TMI 1569

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....ds of appeal: "1. On the facts and in the circumstances of the case, the Ld. CIT(A)-2, Nashik erred in deleting the addition on account of low Melting gains shown by the assessee compared to earlier financial years. 2. On the facts and in the circumstances of the case and in law, the order of the CIT(A), NFAC, be cancelled on the above issue and that of the A.O. be restored. 3. The appellant craves leave to add, alter, modify, delete amend any of the grounds with prior permission of the Hon'ble CIT, as per the circumstances of the case." 2. The brief facts of the case are that the assessee firm filed its original return of income electronically for the A.Y. 2017-18 on 25.10.2017 declaring total income of Rs.Nil....

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....plain the reason for lower melting gain. However, the AO was not satisfied with the reply of the assessee. The AO in para 6 sub para 3 has held as under: "3. Further, it is true that the melting gain depends on the purity of old ornaments or gold given by the customers. However, the melting gain ratio shown by the assessee is less than its own melting gains shown for the previous years. 4. The average value of the melting gains in the market is around 4-6%. Therefore, considering the above reasons and the melting gains of AY 2013-14, the melting gains is adopted at 6%." 4. Aggrieved by the addition, the assessee filed appeal before the ld.CIT(A). The ld.CIT(A) allowed this ground of the assessee. In para ....

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....urchased of the old ornament (MOD) was perfect. Moreover, the assessee is consistently following the particular method and that method has never been questioned by the revenue. In our opinion, there is no justification to support the addition made by the AO and confirmed by the Ld. CIT(A) in respect of alleged suppression of the melting gain. We accordingly delete the said addition. In the result, respective grounds taken by the assessee are allowed. Respectfully following the decision of Hon'ble ITAT Pune, wherein the facts of the case are squarely applicable in the case of the appellant, Therefore, I am of the considered view that the A.O. is not justified in making addition of Rs. 1,94,05,998/- on account low melting gain. T....