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2014 (4) TMI 343 - AT - Income TaxDeletion of addition u/s 69 OR 69A of the Act – Opportunity to admit fresh evidences u/r 46A of the Rules - Declaration of Long term capital gain - Conversion of capital asset into stock-in-trade u/s 45(3) of the Act – Held that:- AO has rightly was of the view that the assessee had not shown any purchase during the year - The stock shown was the net figure of Rs.85.15 lakhs - there were no sundry debtors or creditors or any loans - on verification of return of previous years filed with the department, it was found that the assessee has been holding closing stock of jewellery - assessee has not been able to support his claim since no details of conversion of personal jewellery into stock-in-trade has been filed with supporting evidence. Both returns of income of partners do not indicate any GIR Number or PAN Number - The basic claim of assessee firm is that their partners were owning gold ornaments, which they had introduced as their respective capitals of the firm after offering capital gains/loss on conversion of such ornaments belonging to their respective Hindu undivided family into stock-in-trade in the A.Y.2002-03 – there was violation of Rule 46A by CIT(A) – thus, the matter is required to be remitted back to the AO for examination of the documents so as to substantiate that HUF partners were having jewellery which they have converted into stock-in-trade by offering capital gains in their respective income tax return and same was introduced as capital in the assessee’s firm – Decided in favuor of Revenue.
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