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TMI Blog2015 (10) TMI 162X X X X Extracts X X X X X X X X Extracts X X X X ..... ri V. K. Singh, Sr.DR For the Respondent : Shri Tushar Hemani, AR ORDER Per Shri Kul Bharat, Judicial Member : This appeal by the Revenue is directed against the order of the Ld.Commissioner of Income Tax(Appeals)-II, Surat ( CIT(A) in short) dated 20/05/2011 pertaining to Assessment Year (AY) 2004-05. The Revenue has raised the following grounds of appeal:- [1] On the facts and circumstances of the case and in law, the Ld.CIT(A)-II, Surat has erred in deleting the addition of ₹ 17,13,958/- on account of under valuation of closing stock of gold and silver thereby furnishing inaccurate particulars of stock. [2] On the facts and circumstances of the case and in law the Ld.CIT(A) erred in admitting additional evid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted that the AO found that closing stock of 3659.800 grams of 22 carat gold and 1455 grams silver was held by the assessee on behalf of others and was not considered while preparing Profit Loss account. The AO treated the same as unaccounted stock and made the impugned addition. He submitted that the value of gold ornaments amounting to ₹ 17,02,173/- and value of silver ornaments amounting to ₹ 11,785/-, totalling to ₹ 17,13,958/-. He submitted that the assessee had received such gold ornaments from partners and their relatives and the same have been displayed in its shown room. The assessee has placed on record the names and addresses of the persons to whom such gold ornaments belong to, agreements entered into with suc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that as regards the addition of ₹ 11,785/- in respect of silver ornaments, it is submitted that assessee had placed an order with popular Jewellers, Rajkot for making silver ornaments. He submitted that the arrangement was such whereby assessee was to give silver to Popular Jewellers for making such ornaments and Popular Jewellers shall charge only labour charges for making such ornaments. However, such silver ornaments were received from Popular Jewellers vide bill dated 24/03/2004, but the assessee was yet to give silver of corresponding weight in exchange thereof as per the arrangement. Since no silver was handed over to Popular Jewellers till the year end, no entry was passed in respect of the same. Accordingly no entry was pass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he rival submissions, perused the material available on record and gone through the orders of the authorities below. We find that the ld.CIT(A) has given a finding on fact in paras-2.3.1 of his order, which reads as under:- 2.3.1. I have duly considered the submission of the appellant, and, the same can be divided in the two parts, value of 3659.800 gms. of 22 cts gold jewellery and ornaments and value of 1455.00 gms of silver jewellery and ornaments at ₹ 17,02,173/- and ₹ 11,785/- respectively. In respect of the gold ornaments, the appellant s submission is that it is belonging to partners, their families and relatives, and the same has been kept in the show room for display purposes, and, as it has not been part of the pur ..... X X X X Extracts X X X X X X X X Extracts X X X X
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