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2014 (9) TMI 728 - ALLAHABAD HIGH COURTValuation of jewellery – Charging of capital gains - Held that:- CIT has valued the jewellery as per cost index, but the fact remains that jewellery always contains some impurity - no jewellery can be made from pure gold - This aspect was not examined by the CIT before enhancing the addition - Had he given the benefit of impurity, perhaps there was no occasion to enhance the addition - the jewellery was converted into stock in trade by the assessee - It was not an actual sale - when there are two interpretation pertaining to the charging of the capital gains, then the order passed by AO is not erroneous - It is case of "change of opinion" which is not permissible as decided in C.I.T. Vs. Kelvinator of India [2002 (4) TMI 37 - DELHI High Court] - the order passed by the AO is neither erroneous nor prejudicial to the interest of the revenue – thus, the order of the Tribunal is set aside – Decided in favour of assessee. Penalty u/s 271(1)(c) – Held that:- The Tribunal has cancelled the levy of the penalty as the addition in quantum appeal is being deleted, then there is no justification to levy any penalty u/s 271(1)(c) – the order of the Tribunal is upheld – Decided against revenue.
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