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2017 (11) TMI 176 - AT - Income TaxAssessments made u/s 153A - seizure of incriminating material from the search - Held that:- The assessing officer made the addition on the basis of invoices seized during the course of search relating to non tax invoices issued without collection of VAT to the dealers of Gold / Bullion. According to the Ld.AR, the invoices raised on sales made to dealers (Tax invoices) were not seized by the department, hence there was a difference. During the appeal hearing, the assessee had submitted all the details of sales made in paper book and the same were placed before the AO at the time of hearing. The assessee has submitted the complete details on the sales made with regard to tax invoices i.e. dealers with address and amount which is enclosed in page no.51 of paper book. From the grounds of appeal and the submissions made before the Ld.CIT(A), it is evident that the assessee has canvassed the case on merits but not on legal grounds. Therefore, we have no hesitation to hold that the Ld.CIT(A) while deciding the appeal has considered the issue both on legal grounds as well as on merits. Hence, we hold that the case need not be remitted back to the file of the Ld.CIT(A). Addition towards valuation in closing stock - unexplained investment - difference in stock with reference to the bill books and invoices - Held that:- The assessee has produced both the bill books before the assessing officer along with books of accounts, but the assessing officer did not find any defect in the books of accounts. As per the invoices, the purchases and sales are tallied and there was no difference. The assessing officer having verified books of accounts with the bill books, no defect was found by the assessing officer. All the purchases and sales are accounted and there was no discrepancy in the stock. There was no dispute with regard to the purchases. The assessee had declared the sales inclusive of 62 bars in sales account and furnished the details with address to the AO. The AO did not make any enquiry with regard to the sales and no difference was found. Therefore we hold that there is no case for making the addition on account of unexplained investment. The assessing officer made the addition as unexplained investment but the assessing officer did not make out a case that the purchases were made from the unaccounted sources. When the purchases were made from the business funds and duly accounted in the books of accounts, there is no case for making addition as unexplained investment. Additions of suppression of sales due to a difference in VAT return and the income tax returns - Held that:- The assessing officer drawn his conclusion based on original VAT return filed by the assessee. The assessing officer did not consider the revised VAT return though it was filed before the AO during the assessment proceedings. Therefore, we remit the matter back to the file of the assessing officer, directing the assessing officer to consider the revised VAT return and decide the issue afresh on merits. Thus ground allowed for statistical purpose.
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