9911796707
TMI Blog2010 (5) TMI 822X X X X Extracts X X X X X X X X Extracts X X X X ..... e Act') vide his order dated 15-12-2006 for assessment year 2005-06. 2. The only issue in this appeal of the assessee is against the order of CIT(A) confirming the action of Assessing Officer in making addition of diamonds found during search of 485.26 carats as undisclosed income of the assessee. For this, assessee has raised the following ground No.1:- "1. On the facts and in circumstances of the case as well as law on the subject, the learned Commissioner of Income-tax (Appeals) has erred in confirming the action of the Assessing Officer in making addition of ₹ 67,93,643/- being value of 485.26 carats of diamonds found in search and claimed by assessee as undisclosed income." 3. The brief facts leading to the above issue are ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Somaiya International for 180.76 carats and 507.43 carats vide invoices dated 07-09-2002 and 12.09.2002 respectively. The Assessing Officer had not accepted assessee's claim for diamond and treated the same as investment out of its undisclosed sources. AO made addition of ₹ 67,93,643/- for 485.246 carats on protective basis to the total income of the assessee and substantive addition was made in the case of M/s Patel Somabhai Kanchanlal & Co. The AO observed that there was no Jangad i.e. certificate of entrustment accompanying the said packet and the name of the assessee was not appearing anywhere on the packet as well as inside the packet. AO also observed that the complete address was not mentioned either of sender or receiver and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e records. The appellant was not able to explain properly why the goods were sent from Mumbai office to Surat office when normally the goods were being sent from Surat office to Mumbai office. Under these circumstances, I agree with the findings of the Assessing Officer and confirm the addition of ₹ 67,93,643/- as income from undisclosed sources." Aggrieved, against the action of the CIT(A) confirming the addition, the assessee came in second appeal before us. 4. We have heard the rival contentions and gone through the facts and circumstances of the case. We have perused the case records including the assessment order and the order of CIT(A) as well as assessee's paper book. We find that the ownership of diamond as belonging to asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the goods were sent by employee of the assesseefirm to the partner of the assessee-firm in the capacity of employee and partner of M/s. Priyanka Gems. The ld. counsel stated the fact that there are only two partners being husband and wife and only Shri Prakashbhai is working partner and drawing remuneration from the assessee-firm. We find that after recording the statement on 29-07-2004, the partner was not asked to produce the invoice of the purchase of the balance-sheet of M/s Priyanka Gems, but in the assessment proceeding before Assessing Officer, assessee produced documentary evidence in the form of bills of purchase evidencing source of the stock of goods seized and even the stock register was also produced. We find that the AO obse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for assortment purpose under his supervision. We find that the Assessing Officer observed that assessee has exported 203.32 carats when in fact, assessee was left with the stock of 202.93 carats after the seizure but we find that there is only difference of 39 cents (0.39 carats) which may be owing to the variation in the weight. Although, there is a seizure of diamond of 485.26 carats, assessee has shown closing stock as on 31-03-2005 of 484.87 carats showing difference of 39 cents which proves that there may be difference in weighting at the time of the seizure or while exporting the goods of 203.32 carats. We further find that the assessee has exported 203.32 carats of diamonds vide invoice No.3 dated 17-08- 2004 and the assessee was hav ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
