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2017 (12) TMI 1733 - AT - Income TaxAddition u/s 68 - assessee was selected for scrutiny - discrepancies in the jewellery declared under VDIS Scheme and sold - as noticed by the AO that assessee has maintained the capital account as received from sale of gold, silver and diamonds which were declared by the assessee under VDIS 1997 - AO came to the conclusion that the jewellery sold are not the same which were declared under VDIS as there was difference in quantities - HELD THAT:- From the details of the bills, we find in the case of Basavaraj I. Kamatagi, HUF that the gold and silver jewellery were given for conversion into bullion to Shree Balaji Refinery and the gold bullion was sold on 28.01.98 and silver bullion on 18.01.98. Since the gold jewellery and silver jewellery were sold in the form of bullion on 28.01.98 and 18.01.98, where as the need to get it converted into bullion? The assessee has not made out the case that gold and silver jewellery were not saleable in the open market and the jewellers have forced them to get it converted into bullion before purchase. The assessee could not furnish the valid reasons for the conversion of jewellery into bullion. If in any case the jewelleries are to be converted into bullion, how the weight of jewellery gets substantially reduced. All these questions remained unanswered during the course of hearing. We cannot ignore the facts that in the original assessment proceedings, assessee has agreed for the additions proposed by the AO on account of profit and sale of jewelleries. But when the assessment order was revised under section 263 by the CIT in consequential order, assessee retracted from the earlier statement and tried to justify the sale of declared jewellery. Whatever quantity was declared under VDIS Scheme was not sold later on. Therefore, we are of the view that order of the Tribunal would not render any assistance to the assessee. Keeping in view the totality of the fact and circumstances of the case, we are of the considered opinion that assessee could not establish that the goods declared under the VDIS Scheme 1997 were sold as claimed by the assessee. Therefore, we find no infirmity in the order of the CIT(A) who has rightly confirmed the addition. - Decided against assessee.
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