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2018 (8) TMI 1252 - ITAT VISAKHAPATNAMGenuineness of expenditure - making charges of gold ornaments - Assessee contended that, AO has disallowed 53% of the total expenditure and adopted the minimum rate of ₹ 82/- per gram against average making charges of ₹ 166.66/- per gram which is highly unreasonable and arbitrative. - The CIT(A) adopted the rate of ₹ 140/- per gram against the average price paid to local smiths at ₹ 166/- per gram. - Held that:- considering the facts and merits of the case we are of the considered opinion that adopting the rate of ₹ 150/- per gram as average would be fair and reasonable to meet the ends of justice - Decided partly in favor of assessee. Additions u/s 68 - purchase of jewellery from Veer Jewellers - unexplained cash credit - AO observed that no prudent person would involve in such a huge transaction around ₹ 81.00 lakhs in a casual manner and return the precious metal without obtaining the proper receipt. - Held that:- The assessee explained that both the stock and liability was declared in the books of accounts, hence no case for making the addition. No other evidence was brought on record by the revenue to controvert the submission made by the assessee with regard to admission of stocks as well as the liability in the assessee’s books of accounts.. Since the liability as well as the stock are declared and continued in the books of accounts, there was no under assessment, and there was no bogus liability to make the addition. - Decided in favor of assessee.
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