2016 (5) TMI 1328 - AT - Income Tax

Unaccounted local sales of gold - suppression of sales - assessee contends that there are now additional evidences which show that actual consumption of gold was at 92.9% purity level as against minimum requirement of 91.6% - Held that - We find that the issue is squarely covered by Hon ble jurisdictional High Court s judgement in assessee s own case for the assessment year 1989-90 2014 (3) TMI 651 - GUJARAT HIGH COURT against the assessee. As for the arguments of the assessee regarding what he perceives as errors in the reasoning process we can do no better than to quote the words of Hon ble Supreme Court in the case of Ambika Prasad Mishra vs. State of U.P. (1980 (5) TMI 100 - SUPREME COURT ) that every new discovery nor argumentative novelty cannot undo or compel reconsideration of a binding precedent. We humbly bow before the higher wisdom of Hon ble Courts above and simply follow their words of wisdom. We are therefore not really inclined to even deal with learned counsel s analysis of subsidiary reasons which prevailed before their Lordships as against the real reasons which were referred to in the assessment year 2000-01. Suffice to say that the issue before us is exactly the same as before Their Lordships and that in our considered view there is no material change in facts and circumstances of the case nor is there any material and additional evidence which affects binding nature of this judicial precedent. The facts of the other assessment years i.e. assessment years 1991-92 to 1994-95 are similar and as learned representatives fairly agree outcome of all the assessment years will be the same. - Decided against assessee

Summary

Issues Involved:
1. Confirmation of addition due to unaccounted local sales of gold.
2. Discrepancy in gold consumption and purity standards.
3. Reliance on previous assessment orders and judicial precedents.
4. Evaluation of new evidence submitted by the assessee.

Detailed Analysis:

1. Confirmation of Addition Due to Unaccounted Local Sales of Gold:
The primary issue in these appeals is the confirmation of additions made by the Assessing Officer (AO) for unaccounted local sales of gold for various assessment years. The AO made these additions based on discrepancies in the gold consumption reported by the assessee and the purity standards required. The assessee's books showed a higher gold consumption percentage than what was certified by customs authorities in export documents. The AO concluded that this excess gold was sold locally and not accounted for in the books.

2. Discrepancy in Gold Consumption and Purity Standards:
The AO observed that the assessee reported a gold consumption of 93.37% for 22-carat ornaments, while the customs certification indicated a purity of 91.66%. This discrepancy led to the computation of excess gold consumption, which the AO treated as unaccounted local sales. The Tribunal, in its previous order, had upheld this addition, noting that the assessee failed to reconcile the differences between the gold purity reported in its books and the export documents.

3. Reliance on Previous Assessment Orders and Judicial Precedents:
The CIT(A) and the Tribunal relied heavily on the findings from the assessment year 1989-90, which were upheld by the Hon'ble jurisdictional High Court. The High Court had dismissed the assessee's appeal, confirming the addition for unaccounted local sales based on the same discrepancies in gold purity. The Tribunal noted that the issue for the assessment years 1990-91 to 1994-95 was identical to that of 1989-90, and there was no material change in facts or circumstances that would warrant a different conclusion.

4. Evaluation of New Evidence Submitted by the Assessee:
The assessee contended that new evidence showed actual gold consumption at a purity level of 92.9%, which was higher than the required 91.6%. However, the Tribunal found that these new documents were not contemporaneous and did not establish actual gold consumption at the higher purity level. The Tribunal held that the issue was squarely covered by the High Court's judgment in the assessee's own case for the assessment year 1989-90, and the new evidence did not affect the binding nature of this judicial precedent.

Conclusion:
The Tribunal dismissed the appeals, confirming the additions made by the AO for unaccounted local sales of gold. The Tribunal's decision was based on the consistent findings of discrepancies in gold purity between the assessee's books and export documents, reliance on previous judicial precedents, and the inadequacy of new evidence submitted by the assessee. The Tribunal upheld the CIT(A)'s order, which was in conformity with the High Court's judgment, and declined to interfere in the matter.