Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2019 (5) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (5) TMI 1312 - ITAT MUMBAIUnexplained jewellery - addition based no source of the jewellery given - HELD THAT:- Gold jewellery which was intercepted by the Police Authorities under suspicious circumstances, has been declared by Hon’ble Judicial Magistrate as belonging to Sh. Dhiraj Kumar, the possessor thereof which is evident from the orders of Hon’ble court as placed on record. Nothing on record suggest that Sh. Dhiraj Kumar was not an employee of the assessee company and the said jewellery did not belong to assessee company. In fact, the statement of Sh. Dhiraj Kumar as well as the director of the assessee company, in unison, confirm the said facts. Proceeding further, the said jewellery was duly accounted for in the stock registers submitted by the assessee during assessment proceedings and the assessee produced documentary evidences in the shape of sales invoices, authorization letter issued by assessee in respect of goods to be delivered to the aforesaid parties, copy of issue vouchers for gold bars weighing 796.810 grams issued by M/s Swasthikas Jewelers. The stock of gold jewellery under dispute, upon release by judicial authorities, has been received back in the stock register maintained by the assessee and hence, duly accounted for. Lastly, the whole basis of making additions i.e. denial by the 3 parties as to placing any work order with the assessee, was never confronted to the assessee which was in violation of principle of natural justice. It is trite law that no addition could be made merely on the basis of suspicion, conjectures or surmises. In fact, the assessee has supplied the jewellery to few of these parties subsequently during the impugned AY itself which further weakens that stand of Ld.AO. The given factual matrix convinces us to concur with the stand taken by Ld. first appellate authority in the impugned order. By confirming the same, we dismiss revenue’s appeal.
|