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2023 (11) TMI 860 - ITAT DELHIAddition u/s 69A - difference in the stock found during the survey vis-a-vis recorded in the books of accounts - Excess stock of 22Kr Gold and Polki Jewellery studded 22kt gold jewellery of 14kt and 18kt and gold jewellery of 14kt and 18kt studded with diamonds - HELD THAT:- Total weight of items of 22KT Gold jewellery and 22KT Gold Polki jewellery was 36,943 gms and as per the estimated value, the difference was of merely 113.50 gms. which is 0.32%. While weighing more than 34,000 gms of jewellery, the difference of 113 gms. could be considered as an error and no adverse inference cannot be drawn on this issue. With regard to inter-mixing of gold jewellery of 18KT and 14KT, from the table above, we find that the combined weight of the jewellery was 77,962 gms. and the difference was 453 gms. which is 0.58%, hence, the difference of 453 gms. could be considered as an estimation error and no adverse inference cannot be drawn on this issue. With regard to the difference in the weight of diamond in studded jewellery items of 18KT and 14 KT gold jewellery, the excess diamond has been determined at 723 carats. From examination of the valuation report prepared by the authorized valuer at the time of the survey, we find that the diamonds have never been separated from the gold jwellery. The weight has been extracted from the gross weight. The total jewellery as per books was 72,962 gms. In the absence of specific findings and tags describing the weight of the jewellery in terms of gold and diamond separately, the weight stated in the valuation report can be considered as near estimations but not absolute weight. Under these factual circumstances, it is clear from the record that the weight of the diamond has not been arrived at fittingly. Hence as been excess diamonds determined at one showroom of 14KT and shortage determined at the another showroom and keeping in view the fact that the diamonds have not been separately weighed, we hold that no addition is called for on this ground. Appeal of the assessee is allowed.
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