TaxTMI 
TaxTMI 
2026 (3) TMI 623
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....CIT - A) dated 27th of January 2025 wherein the appeal filed by the assessee against the reassessment order passed by the Deputy Commissioner of Income Tax, Central Circle - 1 (1), Bengaluru (the AO) under section 147 the Income Tax Act, 1961 [the Act] dated 31st of March 2023, was dismissed. 2. The assessee is aggrieved with the reopening of the assessment, transfer of jurisdiction under section 127 and the addition made of Rs. 5,469,543 as unexplained investment under section 69 of the Act. 3. The brief facts of the case shows that that assessee is an individual engaged in the business of trading of gold and silver jewellery and articles in the name of his proprietary concern, Sharada Jewellers, Mandipet, Davangere. Assessee is also....
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.... accounts were not updated after 31st of March 2016 since the return of income was not filed by the assessee for assessment year 2017 - 18. However assessee provided the books of accounts as on 31st of March 2016 wherein the book stock available of gold was valued at Rs. 6,543,843 and silver articles were valued at Rs. 2,418,615. This fact was recorded as per question No. 8 during the course of survey. The closing stock was also worked out as on the date of survey by taking the opening balance of gold and silver as on 1 April 2016, by adjusting the sales and purchase up to the date of survey and the book stock was worked out for gold jewellery at Rs. 5,527,085 and silver articles were determined at Rs. 304,239/-. This was also confirmed by ....
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.... 5,496,543, the assessee submitted that as on the date of the survey the income tax return for the year ended on 31st of March 2017 was not filed. Therefore the value of book stock as on the date of survey was arrived at Rs. 5,527,085 considering provisional values for opening stock. Subsequently during the course of survey proceedings the actual value of opening stock were arrived at after the finalisation of the accounts for the year ended on 31.3.2017 at Rs. 9,019,995 which was also filed in the return of income for assessment year 2017 - 18. Further the calculation during survey, sales value was reduced from stock to arrive at closing stock. The sales includes certain portion of profit. Therefore in fact the cost of the goods sold must ....
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....these grounds are dismissed. 11. The solitary issue pressed before us is with respect to the addition of Rs. 5,469,543 as unexplained investment under section 69 of the Act being alleged difference in valuation of closing stock as on the date of survey and it was argued that there was only a difference of Rs. 1,946,342 which was already disclosed by the assessee in its return of income, which was held to be invalid but the computation of income started from the returned income. The learned authorised representative furnished paper book containing 95 pages. His contention was that the survey took place on 2nd of August 2017 where the return of income for assessment year 2017 - 18 was not filed. It was filed on 27 February 2018. He referre....
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....d perused the orders of the learned lower authorities. Undisputedly during the course of survey at the business premises of the assessee on 2 August 2017 physical stock of gold and silver was found at Rs. 1,13,00,870/-. The book stock as on that date worked out by the survey party is only Rs. 5,831,324. Naturally as on the date of the survey as the return of income was not filed for 31st of March 2017, only the details of stock as on 1 April 2016 were available. According to that the opening stock as on 1 April 2016 was found to be of Rs. 8,962,458. The purchases for financial year 2016 - 2017 was recorded at Rs. 8,291,470/-. Sales for the same period was also recorded at Rs. 9,830,556/- and therefore the learned assessing officer noted tha....
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.... March 2017 from the audited annual accounts of the assessee, it would be Rs. 9,019,955/-. The closing stock would be arrived at Rs. 9,354,528 according to the working as per the trading account prepared on that date. The actual stock found as on the date of the survey as per the survey party was Rs. 11,300,870/-, therefore, the only addition that could have been made in the hands of the assessee on account of the difference in the closing stock would have been Rs. 1,946,342 only. The same amount has already been offered by the assessee in the return of income. 16. Though such return of income is held to be invalid however the assessee has already included the same and further the assessing officer has computed the income starting from t....