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2012 (4) TMI 423 - HC - Income TaxUnderstatement of the sale of bullion (gold and silver) made by the assessee – Addition made by AO as there are cash sales which are not verifiable and the rates whereof is below the average rate of Delhi Bullion Association - ITAT deleted the addition made by the AO - Held that:- It is not the case of the AO that he has come across any material showing that the assessee is receiving something over and above that entered into the books of accounts maintained - all the requisite books and records are maintained duly audited and no specific defect in the same has been pointed out - the lower rates of the Delhi Bullion Association were also comparable with that shown by the assessee even though the rates of the Delhi Bullion Association were in respect of the retail trade and not in respect of the wholesale trade in which the assessee was involved– against revenue. Addition on account of stock of silver bars written off - assessee contended that during weighing and re-weighing of the silver bars on a repeated basis a weight loss due to breakage of corners of the silver bricks occurs - The CIT (A) confirmed the addition as silver was not a perishable commodity – Held that:- AO while rejecting the explanation given by the assessee did not make any verification as to whether in the type of trade i.e., wholesale trade in silver a negligible amount of breakage occurs or not - AO without any evidence to this effect could not conclude that the sales had been made outside the books of accounts - on this basis the Tribunal on facts reversed the finding of the CIT (A) as also the Assessing Officer - the Tribunal arrived at this conclusion and the same is a pure finding of fact.
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