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2015 (12) TMI 705 - AT - Income TaxAddition made on the ground of undisclosed investment u/s. 69 - CIT(A) deleted the addition - Held that:- We find that this deposit of security was made by assessee ten years’ back and this fact has been admitted by AO as well as CIT(A). Once the deposit is not made in the relevant assessment year, the same cannot be added. The deposit can be added only in the year when it first time introduced. Accordingly, we confirm the order of CIT(A) deleting the addition. - Decided against revenue Addition made on the ground of undisclosed purchase - AO made addition only for the reason that in the P&L Account purchases of gold bar of 24 Kt. is not reflected and in the absence of such purchases of gold bar from Senco Gold, gold bar of 24 Kt. in stock is not feasible - CIT(A) deleted the addition - Held that:- The assessee accepts old gold ornaments from customers and adjusted the same with purchase bills. Actually bills are raised only in the net quantity of gold items sold to customers. Hence, stock of gold ornaments is automatically adjusted with respect to quantity of gold lying with the assessee, and hence, entire stock is not readily sellable to customers as it includes old gold ornaments. This stock of old gold ornaments was given to Senco Gold, Kolkata for adjustment with purchases of fresh ornaments from Senco Gold make. In this way, Senco Gold, Kolkata accepted old gold ornaments from assessee but customers while adjusting old gold ornaments with their new purchases would not only give the ornaments of Senco Gold but also of other parties. Finally, assessee has to convert this old gold ornaments of other make into 24 Kt. gold of Senco Gold except the same is converting to 22 Kt. of gold ornaments to 24 Kt. of gold has no financial implication and the same is shown as purchases. Accordingly, the entire undisclosed purchases are nothing but return of goods which was converted into 24 Kt. standard gold bars supplied to the assessee by the franchiser. In view of the above discussion and facts of the case, we are inclined to accept the contention of the assessee and hence, the order of CIT(A) on this issue is confirmed.- Decided against revenue Addition made on the ground of income from other sources - CIT(A) deleted the addition - Held that:-Originally, the assessee declared these amounts to be received in cash as per old ledger register. Subsequently, the assessee filed new ledger account and explained that the advance nearly 90% are received through account payee cheques and other are in cash. Ld. Counsel for the assessee admitted that this is unintentional mistake in showing all the transactions in cash and this mistake has occurred due to copy paste in computer. The assessee before the AO offered that the advances received through bank can be examined from bank statement and other details. He filed complete details before the AO but the AO has not accepted the explanation of the assessee and added entire advance of ₹ 22,86,958/- which were outstanding as on 31.03.2009. We find that the assessee before the lower authorities filed complete details in respect of advances received by cheques and cash. In view of the above facts and circumstances, we find that the CIT(A) has rightly deleted the addition - Decided against revenue
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