1986 (12) TMI 86

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..... 's agitation is that addition of Rs. 21,405 on account of closing stock under valuation should not have been upheld, the revue agitates relief of Rs. 46,888 out of the addition of Rs. 68,294 made in the assessment in relation of trading results. 2. The assessee, an individual was enjoying income from purchase and sale of gold ornaments. The purchases were stated to be melted and new ornaments mad .....

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..... r which was31st March, 1981. The sales were stated to be not supported by vouchers and further according to the assessing officer, the assessee had not accounted for the stones studded in ornaments purchased. 3. The AAC accepted the contention that there is no variation in the opening stock after observing that though gold-smiths were produced before the ITO for verification whether ornaments wer .....

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..... with the ornaments purchased by him, but that the same are of an ordinary variety and their value is negligible. Further, that there cannot be re-used for making new ornaments as they get burnt in the process of re-making. The explanation of the learned counsel appears to be acceptable. 5. The first appellate authority however, upheld the assessing officers stand that there was under-valuation of .....

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..... f gold in concerned. The ITO however, rightly investigated the valuation of the closing stock because the assessee's version of valuation at cost was clearly wrong considering the quantity sold and this can be demostrated from the figures available from the records maintained as follows: "Asst.yr 1979-80 1980-81 1981-82 Opening stock Gms. 3317 3518 3309 Rate per gm. Rs. 43 44 61 Pur .....

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..... ition retained on account of under valuation of closing stock. The revenue however, must succeed in relation to un-accounted for stones studded in purchased ornaments for which we estimate an addition of Rs. 5000 considering the quantum of purchases which were worth only Rs. 64,549 and the opening stocks. 8. The result would be that whereas the assessee fails the Revenue appeal is partly allowed .....

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