Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2012 (1) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2012 (1) TMI 92 - HC - Income TaxUnexplained Investment – Search conducted – assessee declared undisclosed investment of Rs.42,65,924/- - A.O. made addition of Rs 61,64,407/ on ground of undisclosed stock - CIT(A) deleted addition of Rs 23,08,033/- as assessee established that belonged to third parties – balance addition was deleted by Tribunal – Held that:- Assessee in their explanation had pointed out that the valuation reports had taken the value of 24 carat gold at Rs.790 per gram but did not correspondingly reduce the value of 18 carat and 22 carat gold. Further, even the stock, recorded in the books of account, was valued as per the market rates, which is not correct, and under the mercantile system of accounting an assessee is entitled to value the stock in hand (declared stock) at “cost price or market price, whichever is lower”. The assessee had valued the stock at cost price. The cost price as recorded in the books was not rejected or adversely commented upon in the assessment order. Thus an obvious mistake has been corrected by the Tribunal – Decided in favor of assessee.
|