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TMI Blog2016 (6) TMI 1368X X X X Extracts X X X X X X X X Extracts X X X X ..... rough this common order. 02. Facts of the case are that these assessee had filed returns for the impugned assessment year declaring income, as under : Table No.1 Sl.No. Name of the assessee Income declared Rs. 1. Smt. Majuladevi H. Jain 1,26,750/- 2. Smt. Leeladevi R. Jain 1,27,900/- 3. Smt. Sushiladevi G. Jain 1,26,900/- 4. Smt. Kamaladevi J. Jain 1,75,791/- 03. During the course of assessment proceedings it was noted by the AO that these assessees had credited certain amounts in their accounts which were explained as coming out of the sale proceeds of gold / diamonds. These are listed hereunder : Table No.2 Sl. No Name of the assessee Realisation from sale of gold Rs. Realisation fro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... per the AO, M/s. Balaji Refinery, through which assessees had claimed the jewellery to have been assayed into bullion never existed. As per the AO, a large number of similar assessees who had declared gold jewellery through VDIS return, had claimed sale of such gold through MLJ for showing source. The inference drawn by the AO was that such sales could not have been effected in a short span of four months time and MLJ could not have done business to the tune of Rs. 20 crores in such a short span of time. Thus the AO held in all the above cases that the source for the credits mentioned at Table No.2 above were not proved by the assessees and additions were made accordingly. Similar inferences were made with regard to diamond sales claimed b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... jewellery which were declared in the VDIS declarations. Further as per the AO neither of the concern to whom assessee claimed sales viz., M/s. Shri. Mahalaxmi Jewellers in the case of gold and M/s. Hunney Exports / M/s. B. Ashok Kumar & Co.,in the case of diamonds were traceable. AO also noted that some of the items of gold jewellery declared in VDIS comprised of antique items and assessees who were financially sound would not have sold such old gold jewellery. Further as per the AO, if at all the assessees wanted to sell the jewellery they would have sold it directly without melting and shaping it as bullion. Thus he reached a conclusion that what was sold by the assessees were not the gold jewellery which were declared by them in VDIS. H ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d diamond jewellery declared in VDIS returns were melted and converted into bullion and sold was discharged. Hon'ble jurisdictional High Court had clearly held that if the assessees were able to show that the sales were of the very same gold and diamond jewellery which were declared in VDIS, then the source for the credits stood explained. As per the Ld. AR, M/s. Balaji Refinery had clearly given the details of the jewellery items which were given to them for melting. Labour charges were also paid by the assessees. Ld. AR submitted that copies of bills issued by M/s. Balaji Refinery clearly proved conversion of the ornaments into bullion. As per the Ld. AR, assessees concerned had converted the gold and diamond jewellery to bullion and sepa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Ld. DR additions were rightly made by the AO and confirmed by the CIT (A). 13. We have perused the orders and heard the rival contentions. Evidence furnished by the assessees in support of their contention that what were sold by them was the same gold jewellery after converting it into bullion has been perused by us. Case of one of the assessees, namely Smt. Manjudevi H. Jain is taken as an example. The valuation report dt.13.10.1997, bill from M/s. Balaji Refinery, dt.03.11.1997, purchase invoice dt.07.01.1998 issued by MLJ and purchase memo dt.22.01.1998 of M/s. Hunney Exports are reproduced hereunder : 14. What we note is that all the items which were appearing in bill issued by M/s. Balaji Refinery were also mentioned in the valuat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... heir means to show that the gold and diamond sold by them were the same gold and diamond declared in VDIS, after conversion. Assessees had submitted copies of bills issued by M/s. Balaji Refinery which did show similar details of gold and diamond as returned in the VDIS. In such situation we are of the opinion that assessees had discharged their onus to show that the gold and diamond sold by them were the same which were declared by them in the VDIS declarations. Reasoning given by the AO that antique jewellery would not have been sold by the assessees is only a surmise and cannot dislodge the evidence filed by the assessee. Further there is nothing on record to show that the gold jewellery which were sold by the assessee were antique in na ..... X X X X Extracts X X X X X X X X Extracts X X X X
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