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2017 (9) TMI 1525 - AT - Income TaxAddition made on account of excess stock - Held that:- It is noticed that the assessee has submitted updated copy of day-wise stock register of gold ornaments. During the course of assessment proceedings, the Assessing Officer could not found any discrepancy in the purchases which were not entered in the books of accounts at the time of survey. The only discrepancy found was only 110.6 grams in the quantum of gold ornaments. There was the difference in the value of the stock of the gold ornaments. On that basis, the difference worked out at ₹ 8,96,921/-. CIT(A) has sustained addition to that extent. In the case of silver ornaments the difference was of ₹ 866 grams and CIT(A) has sustained addition of ₹ 2,42,648/-. With regard to the precious stones weighing 60 carats valued at ₹ 80,000, no proper explanation was submitted before the authorities below and also before us also, therefore after considering all the aspects, the order of CIT(A) on this issue is sustained. In the result appeal of revenue as well as by the assessee are dismissed. Addition under the head of ‘unrecorded debtors' - Held that:- We noticed that CIT(A) has estimated the gross profit @15% on the sales ₹ 12,51,327/- and estimated the profit. CIT(A) also reduced gross profit rate of 9.19% which was declared by the assessee. Before us, both the sides are not able to controvert the findings recorded by the CIT(A). Therefore, we are sustaining the order of CIT(A) on this issue. Thus ground No. 2 of the assesses and ground of the revenue stand dismissed. Addition on account of investments in based on impounded - Held that:- We found that assessee was not able to explain the investments of ₹ 4,00,000/- in tehu while other notings figures and in the paper were considered while working out account. The unaccounted sundry debtors as per the annexure A-6.After considering all relevant facts, we find that CIT(A) has rightly appreciated the facts on the issue. Therefore, we sustain the order of CIT(A). Addition on account of alleged excess cash - Held that:- Since both sides are not able to controvert the finding recorded by CIT(A) with respect to cash balance available with assessee’s on the day of survey, therefore, we sustain the findings recorded by CIT(A). In the result ground No. 7 of the revenue ground No. 4 of this appeal stand dismissed. Unexplained investment in the lottery - Held that:- As this investments has made by Shri Deepak Garg and has been disclosed in his personal investment. Therefore, CIT(A) has rightly deleted this addition. Therefore, we find no merit in this ground of revenue’s appeal.
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