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2015 (6) TMI 1232 - AT - Income TaxUnexplained investment (in terms of excess stock of jewellery) - determination of the excess stock - whether the Learned CIT(Appeals) was justified in computing the undisclosed stock in the manner stated in its order? - HELD THAT:- The methodology adopted by the Learned CIT(Appeals) is correct for determining the value of the undisclosed stock and the computation done by the Assessing Officer to determine the value of undisclosed stock is not correct one. For the purpose of making addition on account of undisclosed stock, first the quantity/weight of such undisclosed stock has to be determined and then market value of this undisclosed stock is to be added as income. Accordingly, ground No. 2 of the appeal of the Revenue is rejected. Valuation done by the approved valuer as on the date of search - HELD THAT:- On going through this letter and also the discrepancy pointed out by the Learned AR in the two valuations, there appears to be some differences in the valuation carried out on the date of search. The Learned CIT(Appeals) has considered this issue and has held that the departmental valuer had properly considered the quantity, rate of gold jewellery and other precious stones at the time of the search operation and valued it accordingly. On the basis of these findings, he has rejected the contention of the assessee regarding the defects in the valuation. Considering the overall facts and circumstances of the case and the fact that this valuation was done on the date of search, when stock was physically examined, we do not see any reason to deviate with the findings given by the Learned CIT(Appeals) on this issue. In result, ground Nos. 3 and 4 of the assessee's appeal are rejected. Offering Undisclosed income for taxation - HELD THAT:- CIT(Appeals) was not correct in not giving credit of the jewellery acquired out of the income offered by Mr. Sanjiv Kumar Aggarwal and we thus direct the Assessing Officer to allow credit of the jewellery to the extent of 18,548.448 grams contributed by its director Mr. Sanjiv Kumar Aggarwal while computing the valuation of the undisclosed stock as on the date of the search.
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