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2020 (9) TMI 187 - AT - Income TaxEstimation of sales - Seizure activities - difference between the weight and the value was determined depending upon the purity of the gold as reflected in the working giving in the seized documents - addition by taking 5% net profit on such alleged sales - HELD THAT:- We find that the assessee right from the stage of the assessment proceedings has been clarifying that the quantity of purchase and sale mentioned in the seized documents has duly been disclosed in the working of purchase and sale of jewellery and the figures are not in terms of value. Prima facie the figures of weight/quantity has been wrongly inferred by the AO. This explanation was also given before the CIT (A) also as incorporated above. From the perusal of the seized documents reflects that there was a closing balance of gold jewellery 2763.010 gms which are in terms of quantities and the AO has interpreted the same as alleged sales of ₹ 27,63,010. It was specific clarified before the authorities below that the difference between the weight and the value was determined depending upon the purity of the gold as reflected in the working giving in the seized documents. A bare perusal of these documents read with explanation it is quite clear that the value of the quantity of the gold jewellery has been inferred as in terms of value and the sales has been estimated on the basis of values instead of working given by the assessee in terms of quantity of purchase and sale. The sales declared by the assessee entire quantity recorded in the seized documents and the difference is only on account of inference drawn by the AO that these quantities are in fact in rupees. Otherwise there is no difference in quantities mentioned in the seized records. - Appeal of the assessee is allowed.
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