Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2014 (3) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (3) TMI 651 - HC - Income TaxSuppressed sale – Excess consumption of gold in manufacture - Whether the Tribunal were right in raising inference on fact and in law that the alleged excess consumption of gold in manufacture of gold ornaments through various artisans, were suppressed sales within the country and liable to be treated as the income of the assessee – Held that:- The CIT [A] observed that if the gold ornaments were carrying greater purity value, and therefore, greater content of gold, the assessee had no reason to make a mis-declaration - assessee was meeting with the minimum standard of 22 carat gold - What the assessee had to charge from its importers had nothing to do with what the assessee may declare in the export documents regarding the purity of gold - As per the bylateral understanding, even if the importers would have paid the assessee for the gold purity at 91.66%, there was no reason why the assessee should shy away from declaring that the correct purity of the gold ornaments is 93.37%, if that was the real case - The CIT [A] also made a significant point in observing that the assessee could import only that much quantity of gold that was exported - By making misdeclaration therefore, the assessee was seriously reducing quantity of gold that would be available for import against the export undertaken by it - The analysis made by the Customs authorities also matched with that of the assessee’s own declaration regarding purity of gold. The difference between the two sets of declarations was not minor or insignificant - It could not have been passed off as mixing of impurity or error in measuring standards - It was simply a case where the assessee utterly failed to explain the considerable difference in the gold quantity in two sets of documents maintained by itself - the contention that in absence of proof of local sale, it must be presumed to have been exported, is fallacious - It is not even the case of the assessee, barring his explanation about the higher purity of gold being exported when lower purity gold is declared in the export documents, that such gold was in some form or the other, separately or independently exported - When the authorities did not accept the assessee’s explanation, it comes to a situation where such differential quantity of gold did not form part of the assessee’s exports – the authority rightly reached at was that the gold was subjected to local sale – the order of the Tribunal upheld – Decided against Assessee.
|