9911796707
TMI Blog2013 (6) TMI 329X X X X Extracts X X X X X X X X Extracts X X X X ..... holding that the transactions of receipt of jewellery on approval and its return are genuine transactions, totally overlooking the findings of survey action and the modus operandi detected. 2. Whether on the facts and in the circumstances of the case and in law, CIT (A) is justified in accepting the claim of the assessee that it has received jewellery worth Rs. 21,35,123/- on approval basis on the ground that assessee has maintained consignment account, when this account is unaccounted and does not form part of regular books of accounts kept by the assessee for business purpose." 3. Briefly stated relevant facts of the case are that the assessee is engaged in the business as jewellery merchant. Assessee filed the return of income declari ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion was carried out in the case of M/s. Auro Gold Jewellery P. Ltd. at Mumbai. From the excel sheet found and seized from M/s. Auro Gold Jewellery P. Ltd., it was seen that it has sent a stock of jewellery to the assessee on approval basis. Accordingly, survey u/s 133A was carried out at the business premises of the assessee. It was found that the assessee has shown jewellery received from M/s. Auro gold Jewellery P. Ltd. on approval basis and prepared a separate consignment account. During the survey operation, the stock was inventorised and valued and difference of excess stock found of jewellery of 22238.04 gms. was on account of goods received from M/s. Auro Gold Jewellery P. Ltd. on approval basis which was not included in the stock re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... our charges at Rs. 60/- per gm. As made in the case of the company, M/s. Auro Gold Jewellery P. Ltd. Since, no incriminating document was found and seized during the search and survey operation to prove that the goods were sent on approval but were the actual sales and purchases of the assessee, therefore, no adverse inference can be drawn. The goods sent on approval were entered in the Excel sheet found and seized in the case of M/s. Auro Gold Jewellery P. Ltd. Similarly, these goods were received by the assessee and shown separately in the consignment account which clearly mentions that the goods were received from M/s. Auro gold Jewellery P. Ltd. on approval. In view of these facts and circumstances, the addition made by the AO is not su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... here the receipt of the said jewellary on approval basis was duly recorded in the books of accounts of both parties, namely M/s. Auro gold Jewellery P. Ltd and the assessee. No incriminating document was found and seized during the course of search and survey operation in the cases of M/s. Auro gold Jewellery P. Ltd. and the assessee to prove that these goods were not sent on approval; but these were the sales and purchases of the two parties. In such circumstances, there is no case for taking any adverse inference. Undisputedly, it is an admitted fact that AO did not make any addition of unaccounted purchase of the impugned jewellary received by the assessee on approval basis. However, AO made only the addition of labour charges at Rs. 60/ ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
