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2014 (10) TMI 546 - HC - Income TaxAddition on account of peak investment on sale outside the books Held that:- The figures were mentioned as 74,000/- and 2,32,417/- against the dates of 9.4.1993 and 10.4.1993 represented figures in rupees and it cannot be taken as stock entry - Details in terms of weight, date and amount is mentioned - The total transaction comes to ₹ 5,16,956/- as mentioned in the orders of the lower authorities - The assessee has stated that this is regarding stock checking of ornaments on various dates from different safe almiras, so it was rightly presumed that it relates to sale, outside the books also, it is a finding of fact, thus, there is no need to interfere with the order of the Tribunal Decided against assessee. Addition of deposits of gold Held that:- The Tribunal after examining the material rightly observed that the statement of Smt. Nutan Verma recorded in the second round is not acceptable as there were various discrepancies - Sri Jai Prakash Agarwal was never produced, so, the addition was confirmed by the Tribunal the order of the Tribunal is upheld as the issue is based on finding of facts Decided against assessee. Addition corresponding to GP of sale of gold jewellery Held that:- During search operation, shortage in the stock of gold was found - The explanation given by the assessee is that the assessee and M/s SRV Enterprises, Meerut, have close business connection and said firm was 100% export unit - M/s SRV Enterprises has made entry in their stock register pertaining to the jewelry received from the assessee's firm - One of the partner has confirmed the same, but another partner who was ignorant about the event has denied the knowledge of the transaction, but fact remains that the stock was duly reflected in the books of M/s SRV Enterprises there is no reason to interfere with the order passed by the Tribunal the order of the Tribunal is upheld Decided against revenue. Addition of pawning business Held that:- During the course of search, a bunch of loose papers was seized - they were not engaged in the pawning business - only bunch of loose papers was found, the person concerned were examined by the AO and they have denied any transaction with the assessee - no material was found pertaining to the unaccounted cash or jewellery items mentioned on the loose papers - it is proved that the assessee was not engaged in the pawning business and no transaction of advance money was taken place the order of the Tribunal is upheld Decided against revenue. Addition of designed order books Held that:- After recording the statement of the assessee, the AO made an addition of ₹ 13,55,466/- as undisclosed income on this count consisting of estimated labour charges of ₹ 2,41,838/-; the profit is ₹ 8,13,628/-; and the initial unexplained investment estimated @ ₹ 3 lakhs - the Tribunal has deleted the addition by observing that all the 81 persons whose names recorded in the books were produced before the AO and on oath they supported the claim/statement made by the assessee - when persons concerned were examined by the AO and they confirmed on oath the claim made by the assessee, then there is no reason to interfere with the order passed by the Tribunal Decided against revenue.
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