2026 (4) TMI 1485

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....rder dated 30.12.2018 passed u/s 147/143(3) of the Act pertaining to Assessment Year 2011-12. 2. Brief facts of the case are that assessee company was incorporated on 05.06.1997 under the Companies Act, 1956. The assessee company was engaged in the business of trading in bullions, gold and diamonds. The return of income was filed on 22.09.2011, declaring total income of INR 7,60,130/-. The case of the assessee was re-opened u/s 147 of the Act on the basis of information available that there were unusual transactions including cash deposits into bank. During the course of assessment proceedings, the assessee explained the deposits as part of the sales made outside India as well as local sales. AO has referred the matter for valuation of g....

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....addition made by the AO be restored. 6. On the other hand, Ld.AR for the assessee submits that AO has not doubted the sales made where goods were exported out of India. He submits that every export is subject to verification by the custom officials where the value of the goods has been appraised by custom appraiser and further declaration to the valuation has been made by the assessee. Ld.AR submits that in none of the case, value of the goods exported was doubted by the custom authorities. Ld.AR submits that the goods were exported in the year 2010-11 whereas the approved valuer has made valuation of the sales in the year 2018 i.e. without physical inspecting of the goods. Ld.AR submits that the difference is of 3.7% which is within the....

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....- Findings and Discussion: 5. "Ground Nos. 8 to 8.3: I have considered the facts and circumstances of the case. The present appeal has been filed by the appellant against assessment order dated 30.12.2018, passed u/s 147 of the Act, for the A.Y. 2011-12. In this assessment order, the AO has made addition of Rs. 2,38,28,046/- alleging under valuation of export-sales reported by the appellant on the basis of valuation report pursuant to reference made by the AO. 5.1 The apprehension of underlying of sales was adopted by the AO on the basis of suggestion to verify the sale made by the Investigation Wing, which form the basis of initiation of impugned assessment proceedings u/s 147 through a notice u/s 148 of the Act,....

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....s there is evidence on record suggesting receipts against undisclosed/under invoiced sales. In facts of the present case, has elaborately been point out that neither the Investigation Wing nor the AO had any evidence suggesting receipt of undisclosed income against sales by the appellant. 5.7 In the absence of any evidence, assuming without admitting the valuation made by the valuation officer, the entire exercise of such valuation remains to be a notional exercise, which cannot be the basis of making addition to business income of the appellant. 5.8 Accordingly, I do not find merit in the addition made by the AO, which is hereby deleted for aforesaid reasons. Since the addition is deleted on merits, the other ground raise....