9911796707
TMI Blog2012 (8) TMI 362X X X X Extracts X X X X X X X X Extracts X X X X ..... hases from these parties only and after purchasing diamonds form them, the same have been exported and the quantitative details are given in the tax audit report - deletion of addition by CIT(A) is thus warranted - in favour of assessee. Disallowance of claim of loss due to theft - Held that:- The quantitative details adduced from the sale and purchase invoices and the theft was found on 29.03.2007 as on the same day, FIR was filed with the police department - although the assessee has not maintained stock register and merely because stock was uninsured, no adverse interference can be drawn - in favour of assessee. - I.T.A. No. 535/Ahd/2009 - - - Dated:- 15-6-2012 - SHRI A. K. GARODIA, AND SHRI KUL BHARAT, JJ. Appellant by: Shri B ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er spot inquiries were carried out at the given address of those parties revealed that since last 10 years no body named Doshi Gems and Shri Vimal D Doshi were staying there about that matter carrying on such business further in case of one M/s. Shri Haresh J Katharia it was revealed that at the given address one tailor was operating his embroidery work. Similarly One Mr. Pravin S Vora was doing business in cloth and where as Shri Vasant M Shah was doing brokerage business since last three years And therefore the Assessing Officer issued letter dated .1.0.12.2007 which is reproduced by the Assessing Officer at para no. 4.3 of the Assessment Order [Page no. 3]. Where it was interalia stated that when the parties were not available at the giv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... due to theft of Rs.7,00,000/-. Assessee vide letter dated 13.12.2007 24.12.2007 made necessary submissions. The Assessing Officer was not satisfied with assessee's reply and thus he made addition of Rs.7,00,000/- to the total income of the assessee on account of loss due to theft. 5. Being aggrieved, the assessee carried the matter before Ld. CIT(A) on this issue also and he deleted this addition also and the revenue is in appeal before us on this issue also. 6. Ld. D.R. supported the assessment order. Regarding the first issue he has submitted that purchases are not verifiable and no stock register was maintained and the order of Ld. CIT(A) should be reversed and that of the A.O. should be restored. As against this, Ld. A.R. support ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ke any export sales. Therefore, in my considered opinion adverse inference cannot be drawn purely on the ground that suppliers are not found to be existing at the addresses as mentioned in the purchase bills. This is more so because assessee has also shown very good G.P margin of 18.86% the same is also higher as compared to the G.P ratio of 16.10% of immediately preceding year. Reliance can also be placed on the findings of Honourable Gujarat High Court in the case of CIT V. Kashiram Textile Mills P. Ltd - 284 ITR 61 wherein, it was held that revenue has not disputed details of closing stock that there were no materials on record to conclude that besides alleged fictitious purchases there were other purchases of same materials under di ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ately preceding year. These findings of fact of Ld. CIT(A) could not be controverted by Ld. D.R. and hence, we do not find any reason to interfere in the order of Ld. CIT(A) on this issue. Ground No.1 of the revenue is rejected. 9. Regarding the 2nd issue, we find that this issue was decided by Ld. CIT(A) as per page 8 of his order which is reproduced below: I have gone through the contention of the appellant as well as that of the AO. The AO has disallowed the claim since according to him the appellant had not maintained any stock register where from it could be ascertained such loss as also according to the AO it is unlikely that the appellant had not secured its stock by way of insurance policy, where as according to the appellant i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ind that the claim of the assessee was rejected by the A.O. on this basis that the assessee could not prove the loss due to theft. Clear finding is given by Ld. CIT(A) that the quantitative details were adduced from the sale and purchase invoices and the theft was found on 29.03.2007 and on the same day, FIR was filed with the police department. A finding is given by Ld. CIT(A) that although the assessee has not maintained stock register and for this matter that merely because stock was uninsured, no adverse interference can be drawn. We do not find any reason to interfere in the order of Ld. CIT(A) on this issue also considering the facts of the present case and, therefore, the 2nd ground of the revenue s appeal is also rejected. 11. In ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
