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2013 (6) TMI 329 - AT - Income TaxUnaccounted transactions of receipt of jewellery - addition of labour charges - CIT(A) deleted the addition - search and seizure operation carried out u/s 132 - Held that:- It is a case where the receipt of the said jewellary on approval basis was duly recorded in the books of accounts of both parties, namely M/s. Auro gold Jewellery P. Ltd and the assessee. No incriminating document was found and seized during the course of search and survey operation in the cases of M/s. Auro gold Jewellery P. Ltd. and the assessee to prove that these goods were not sent on approval, but these were the sales and purchases of the two parties. In such circumstances, there is no case for taking any adverse inference. Undisputedly, it is an admitted fact that AO did not make any addition of unaccounted purchase of the impugned jewellary received by the assessee on approval basis. However, AO made only the addition of labour charges at Rs. 60/- per gm on the entire stock of jewellery sent to the assessee on approval basis. There is no evidence whatsoever to suggest that the assessee manufacture the said stock received on approval basis and assessee is due to receive the 'labour charges' from M/s Auro gold Jewellery P. Ltd in lieu of any services rendered by the assessee in this regard. Thus such addition on account of labour charges constitutes a case of addition based on surmises or suspicion. Therefore agreeing with the findings of the CIT(A)- appeal of the Revenue is dismissed.
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