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2013 (8) TMI 104 - AT - Income TaxAddition on account of sale, purchase and manufacture of silver ornaments etc. out side the books - as per AO assessee could not establish the job work during the course of assessment proceedings - CIT(A) deleted the addition - search u/s 132 - Held that:- CIT(A) after a detailed discussion in his order found that the assessee is engaged in job work business and not in purchase and sale of silver ornaments & was able to show that the contents of the documents seized as per Annexure-7 related to job work undertaken by the assessee for various constituents whose name along with quantity of alloy received on different dates and subsequent return of processed goods after job work to them is written. A.O. was not able to place on record or identify any bills either found in the course of search proceedings or in the course of assessment proceedings to support the stand that the assessee has made alleged purchases of silver weighing 2441 kgs. and effected sales of Rs.60,00,000/- each in Assessment Year 2002-03 and for the part period in 2003-04. CIT(A) found that there is no material on record to suggest that the details of job work noted against the names of the persons in any way could be presumed or inferred as purchase and sale business of the assessee as held by the A.O. on mere presumption. The CIT(A) further noticed that even at the time of search under section 132 in the course of recoding of his statement under section 132(4) the assessee has categorically stated that the papers relate to business of job work done in his individual capacity. The A.O. has converted the job work into purchase and sale on the basis of presumption. Thus no infirmity in the order of CIT(A) - appeal of the Revenue dismissed.
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