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2014 (9) TMI 728 - HC - Income TaxValuation of jewellery Charging of capital gains - Held that:- CIT has valued the jewellery as per cost index, but the fact remains that jewellery always contains some impurity - no jewellery can be made from pure gold - This aspect was not examined by the CIT before enhancing the addition - Had he given the benefit of impurity, perhaps there was no occasion to enhance the addition - the jewellery was converted into stock in trade by the assessee - It was not an actual sale - when there are two interpretation pertaining to the charging of the capital gains, then the order passed by AO is not erroneous - It is case of "change of opinion" which is not permissible as decided in C.I.T. Vs. Kelvinator of India [2002 (4) TMI 37 - DELHI High Court] - the order passed by the AO is neither erroneous nor prejudicial to the interest of the revenue thus, the order of the Tribunal is set aside Decided in favour of assessee. Penalty u/s 271(1)(c) Held that:- The Tribunal has cancelled the levy of the penalty as the addition in quantum appeal is being deleted, then there is no justification to levy any penalty u/s 271(1)(c) the order of the Tribunal is upheld Decided against revenue.
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