TMI Blog2013 (6) TMI 329X X X X Extracts X X X X X X X X Extracts X X X X ..... cumstances, there is no case for taking any adverse inference. Undisputedly, it is an admitted fact that AO did not make any addition of unaccounted purchase of the impugned jewellary received by the assessee on approval basis. However, AO made only the addition of labour charges at Rs. 60/- per gm on the entire stock of jewellery sent to the assessee on approval basis. There is no evidence whatsoever to suggest that the assessee manufacture the said stock received on approval basis and assessee is due to receive the 'labour charges' from M/s Auro gold Jewellery P. Ltd in lieu of any services rendered by the assessee in this regard. Thus such addition on account of labour charges constitutes a case of addition based on surmises or suspi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... here was search and seizure operation carried out u/s 132 of the Act in the case of M/s. Auro Gold Jewellery P. Ltd. at Mumbai. From the excel sheet found and seized from M/s. Auro Gold Jewellery P. Ltd., it was seen that it has sent a stock of jewellery to the assessee on approval basis. Accordingly, survey u/s 133A was carried out at the business premises of the assessee. The said transaction was subject matter of the scrutiny assessment and the assessed income of the assessee was determined at Rs. 36,71,292/-. AO made an addition of Rs. 21,35,123/-. Assessee claims all through the proceedings before the AO that he received jewellery worth Rs. 21,35,123/- on approval basis and the said transaction is part of the recorded one in the consig ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e AO has admitted in the assessment order that no income from consignment activity is shown by the assesse but made an addition of the labour charges of Rs. 60/- per gram as made in the case of M/s. Auro Gold Jewellery P. Ltd. On the other hand, the AR of the appellant has submitted that during the assessment proceedings, the copy of goods received on approval basis was submitted before the AO. A copy of the same was also submitted before me which clearly shown that the goods were received on approval basis from M/s. Auro Gold Jewellery P. Ltd. This consignment was shown on approval basis in the Excel sheet found and seized from the business premises of M/.s Auro gold Jewellery P. Ltd. as well as in the consignment account of the assessee. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Auro Gold Jewellery P. Ltd., it is already decided that the goods sent on approval were not the sales of the company as no documentary evidence was found and seized to prove this fact. In totality of facts and circumstances, it is held that the goods sent on approval were not sales and purchases of the assessee and M/s. Auro Gold Jewellery P. Ltd., therefore, the question of making addition on account of labour charges does not arise. Thus, addition made by the AO is deleted. The ground of appeal is allowed." 4.1. Aggrieved, Revenue filed the present appeal before the Tribunal raising the grounds mentioned above. 5. During the proceedings before us, Ld DR dutifully relied on the order of the AO. 6. On the other hand, Ld Counsel for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... jewellery sent to the assessee on approval basis. There is no evidence whatso ever to suggest that the assessee manufacture the said stock received on approval basis and assessee is due to receive the 'labour charges' from M/s Auro gold Jewellery P. Ltd in lieu of any services rendered by the assessee in this regard. In our opinion too, such addition on account of labour charges constitutes a case of addition based on surmises or suspicion. Therefore, we agree with the findings of the CIT(A). Hence, we are of the considered opinion that the order of the CIT (A) is reasonable and there is no infirmity in the same. Accordingly, we confirm the order of the CIT (A) and dismiss the grounds raised by the Revenue. 8. In the result, appeal of th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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