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2014 (3) TMI 1217 - ITAT JABALPURUnexplained cash credit u/s. 68 - unaccounted cash kept in Tijori - HELD THAT:- On consideration of the facts of the case in the light of the entries in the books of account and Tijori Khata, the assessee has been able to explain the availability of cash on the date of survey. The assessee also pointed out that even the seized documents found signature of the survey party to show that the findings of the ld. CIT(A) are in accordance with law. In view of the above, we do not find any merit in this ground appeal of the Revenue. Same is accordingly dismissed. Undervaluation of silver account - valuation done by the survey party - AO observed that the assessee had offered investment in silver ornaments from undisclosed sources on account of excess stock found - HELD THAT:- CIT(A) accepted the valuation done by the Survey party based on factual investigation and explanation made by the assessee during the course of survey. The physical valuation was done of the stock on the basis of the chits attached to the silver items and surrender by assessee of Rs. 58,910/- on account of valuation of excess stock was accepted by the survey party. Therefore, the AO on the basis of his own calculation should not have disturbed the valuation done by the survey party .Assessee showed that no specific query was raised on this issue and item-wise inventory was prepared by the survey party. Therefore, the valuation done by the survey party was correctly accepted by the ld. CIT(A). We, therefore, do not find any merit in this ground of appeal of the Revenue. The same is accordingly dismissed. Addition on account of GP on silver account - AO observed that the assessee had indulged in purchase and sale of silver outside the books of account - CIT(A) deleted addition - HELD THAT:- Addition has been rightly deleted in the matter. The small excess stock was found during the course of survey, which was surrendered by the assessee and accepted by the survey party. No other material was found to prove that the assessee made sales outside the books of account. Therefore, sales could not have been enhanced without any evidence and for low GP, the addition would not be justified. In the result, this ground of appeal of the Revenue is dismissed. Undervaluation of gold ornaments - During the course of survey, the statement of assessee was recorded to explain the stock, in response to which the assessee submitted that entire stock was valued considering the gold to be of 22 carat whereas gold of 20 carat was also involved in this stock. Small stock was surrendered by the assessee - CIT(A) deleted addition - HELD THAT:- We are of the view the addition has been rightly deleted by the ld. CIT(A). The ld. Counsel for the assessee demonstrated before us that when the assessee has made surrender of excess stock of Rs. 3,00,000/-, therefore, further addition would be unjustified. In this case, survey party accepted the surrender of the assessee of excess stock of gold. Therefore, the AO should not have substituted the opinion of the survey party without any material in his possession. This ground is accordingly dismissed. Addition on account of gold ornaments found in a black bag during the survey - CIT(A) deleted addition - HELD THAT:- Assessee has referred to initial statement and also referred to question No. 17 to show proper explanation was given on this issue. PB 14 is final statement and question No. 3 is regarding surrender made. The assessee on the basis of material on record has been able to explain part of the gold ornaments and whatever stock could not be explained, the assessee has made surrender of the same. The ld. CIT(A), therefore, on proper appreciation of facts and material on record has rightly deleted the addition on this issue. This ground is accordingly dismissed. Addition on account of gold ornaments - AO observed that the assessee is indulged in purchase and sales of gold ornaments outside the books and accordingly book results were rejected and addition was made - HELD THAT:- As submitted before the ld. CIT(A) that no query was raised on this issue and there was no basis to make addition. CIT(A) accepted the contention of the assessee and the addition was accordingly deleted. It is stated by both the parties that this ground is same as is considered on account of silver account in which the ld. CIT(A) similarly deleted the addition. Following the same finding we dismiss this ground of appeal of the Revenue as well. Unexplained cash credit - HELD THAT:- Small amounts have been taken from nine creditors and affidavits contained their monthly income and creditors have also confirmed the return of the amounts to them. AO has not adversely commented upon the affidavits of the creditors and the AO never insisted for examination of the creditors at any point of time. Considering the smallness of the amount in question and the ld. CIT(A) admitted the additional evidences which is not challenged in appeal, would suggest that the Revenue has accepted the finding of fact recorded by the ld. CIT(A) regarding genuine credit in the matter. We accordingly, in the absence of any evidence on record, do not think it proper to disturb the findings of the ld. CIT(A) in deleting the addition. This ground is accordingly dismissed.
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