TaxTMI 
TaxTMI 
2026 (3) TMI 1562
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....gold jewellery under Section 69A of the Act and (ii) addition of business income made by the assessing officer. 2. The brief facts of the case are that, the assessee is an individual and is engaged in the business as retailer of gold bullion, purchase & sale of gold ornaments and job works etc. The assessee has filed the return on income for the A.Y. 2018-19 on 30-09-2018 disclosing a total income of Rs. 7,13,060/- and the return of income was processed under Section 143(1) of the Act. There was survey operations u/sec 133A of the Act conducted at the business premises of the assessee on 07-02-2018. Whereas based on the material found and the verification of the books. The assessee has disclosed Rs. 47,10,192/- as additional income for t....
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.... the assessment proceedings. The A.O has recorded statement u/sec 131 of the Act of the accountant of the assessee. The A.O. has dealt on the facts of excess gold bullion and the statement recorded and observed that excess stock of gold has to be taxed and made addition of Rs. 2,83,192/-.On the second disputed issue, the A.O. found that assessee has not given plausible explanations in respect of excess stock of gold jewellery of 818.925gms valued at Rs. 23,04,000/- admitted during the survey u/s 133A of the Act. 4. The contentions raised by the assessee that the excess stock of gold jewellery belongs to the customers who has handed over gold for making of gold jewellery. The assessee has filed the explanations for non-inclusion of the ex....
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....e proceedings, the CIT(A) has considered the grounds of appeals, statement of facts, findings of the Assessing Officer and submissions of assessee but has sustained the addition of unexplained gold jewellery and difference of business income. Further the CIT(A) has granted relief in other grounds of appeal and partly allowed the assessee appeal. Aggrieved by the Commissioner's appeals order on the disputed issues, the assessee has filed an appeal with the Hon'ble Tribunal. 6. At the time of hearing, the learned A.R. submitted that the CIT(A) has erred in confirming in the additions made by the A.O. on account of unexplained gold jewellery and difference of business income overlooking the facts and submissions. The learned A.R. conten....
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....rvices to the customers and earned the labour charges. The gold received from customers for the purpose of making jewellery was not entered in to books of account and only through receipt books, the transactions are completed including handover of gold jewellery and the assessee receives the labour charges and are disclosed in the profit & Loss account. The learned A.R. referred to the submissions made before the first appellate authority, confirmations/affidavits of the parties and the explanations filed in the assessment proceedings. When a query was raised to explain the basis of not including the jewellery transactions in the purchases and sales, the learned A.R. submitted that the assessee received only labour charges and has accounted....