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2015 (12) TMI 705 - ITAT KOLKATA

2015 (12) TMI 705 - ITAT KOLKATA - TMI - Addition made on the ground of undisclosed investment u/s. 69 - CIT(A) deleted the addition - Held that:- We find that this deposit of security was made by assessee ten years’ back and this fact has been admitted by AO as well as CIT(A). Once the deposit is not made in the relevant assessment year, the same cannot be added. The deposit can be added only in the year when it first time introduced. Accordingly, we confirm the order of CIT(A) deleting the add .....

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t quantity of gold items sold to customers. Hence, stock of gold ornaments is automatically adjusted with respect to quantity of gold lying with the assessee, and hence, entire stock is not readily sellable to customers as it includes old gold ornaments. This stock of old gold ornaments was given to Senco Gold, Kolkata for adjustment with purchases of fresh ornaments from Senco Gold make. In this way, Senco Gold, Kolkata accepted old gold ornaments from assessee but customers while adjusting old .....

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the assessee by the franchiser. In view of the above discussion and facts of the case, we are inclined to accept the contention of the assessee and hence, the order of CIT(A) on this issue is confirmed.- Decided against revenue

Addition made on the ground of income from other sources - CIT(A) deleted the addition - Held that:-Originally, the assessee declared these amounts to be received in cash as per old ledger register. Subsequently, the assessee filed new ledger account and explai .....

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e and added entire advance of ₹ 22,86,958/- which were outstanding as on 31.03.2009. We find that the assessee before the lower authorities filed complete details in respect of advances received by cheques and cash. In view of the above facts and circumstances, we find that the CIT(A) has rightly deleted the addition - Decided against revenue - I.T.A No. 235/Kol/2013 - Dated:- 7-9-2015 - Shri S. V. Mehrotra, AM & Shri Mahavir Singh, JM For The Appellant: Shri S. M. Sarfarazut Tauheed, .....

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disclosed investment u/s. 69 of the Act. For this, revenue has raised following ground no.1: 1. Under the facts and circumstances of the case, Ld. CIT(A)-Durgapur erred in deleting addition made on the ground of undisclosed investment u/s. 69 for an amount of ₹ 1,00,000/-. 3. Briefly stated facts are that the AO observed from the Balance Sheet as on 31.03.2009 that the assessee had shown ₹ 700/- only as security deposit to the Franchiser M/s. Senco Gold, Kolkata. The franchiser confi .....

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the AO has not disputed the assessee s contention that the said security deposit was made ten years back. He also observed that no facts to the contrary have been brought on record. It is also noted that the AO had made correspondence with the franchiser in spite of that no adverse finding on the assessee s claim has been given by the AO. In view of this, the CIT(A) accepted the contention of assessee and deleted the addition as made by AO. Aggrieved, revenue is in appeal before us. 4. We have .....

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sue in this appeal of revenue is against the order of CIT(A) deleting the addition made on the ground of undisclosed purchase for an amount of ₹ 9,49,463/-. For this, revenue has raised following ground no.2: 2. Under the facts and circumstances of the case, Ld. CIT(A)-Durgapur erred in deleting addition made on the ground of undisclosed purchase for an amount of ₹ 9,49,463/-. 6. Briefly stated facts are that the AO during the course of assessment proceedings noticed that the assesse .....

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STD gold Total: 200847 958958 Amount adjusted with STD gold purchase In view of the above, the AO required the assessee to explain the aforesaid purchases adjusted because the cash book does not reflect any transaction in this regard. The assessee explained before the AO that franchise never supplied any gold bar to the assessee but they accepted 24 Kt. Gold bar in lieu of cash tendered towards adjustment of their sales. The AO did not accept the explanation of the assessee and made addition on .....

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not be the A.O's case that such undisclosed purchases has resulted in undisclosed sales also. Further, there is no finding in the assessment order that the appellant has invested money for this alleged purchase out of undisclosed sources. Therefore, there is no case made out by the A.O. for an addition u/s.69 of the I.T.Act. It is also to be noted that 24 carat standard gold bars are not a commodity which can be purchased and sold like any other. In my opinion, the A.O. should have looked in .....

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ical. The same is therefore accepted. This ground of appeal is allowed. Aggrieved, revenue is in appeal before Tribunal. 7. We have heard rival submissions and gone through facts and circumstances of the case. Before us and also before lower authorities the assessee produced transaction statements for FY 2008-09 given by Senco Gold, Kolkata from where it is noted that there are some transactions which represents return of gold ornaments or its equivalent. The details are as under: Date Amount VA .....

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represents amount due on account of Standard Gold Bar Purchase of 24 Kt. from assessee by Senco Gold. The AO made addition only for the reason that in the P&L Account purchases of gold bar of 24 Kt. is not reflected and in the absence of such purchases of gold bar from Senco Gold, gold bar of 24 Kt. in stock is not feasible. We are of the view that the AO could not understand the actual operation of the business of the assessee. The assessee purchased gold from customers mainly by cheque pay .....

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readily sellable to customers as it includes old gold ornaments. This stock of old gold ornaments was given to Senco Gold, Kolkata for adjustment with purchases of fresh ornaments from Senco Gold make. In this way, Senco Gold, Kolkata accepted old gold ornaments from assessee but customers while adjusting old gold ornaments with their new purchases would not only give the ornaments of Senco Gold but also of other parties. Finally, assessee has to convert this old gold ornaments of other make int .....

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s confirmed. This issue of revenue s appeal is dismissed. 8. The third issue in this appeal of revenue is against the order of CIT(A) deleting the addition made on the ground of income from other sources. For this, revenue has raised following ground no.3: 3. Under the facts and circumstances of the case, ld. CIT(A), Durgapur erred in deleting addition made on the ground of income from other sources for an amount of ₹ 22,86,958/-. 9. Briefly stated facts are that the AO during the course o .....

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query. Subsequently, he had corrected the same and, stated by way of explanation that the error had occurred as a result of wrong copy paste. In my opinion, the A.O. while disposing of the issue has not considered either the explanation or the new set of figures given to him. Before rejecting the new figure the A.O. has not brought any material on record to indicate that the contention of the appellant that these were bona fide advances was not correct. I find that the A.O. has summarily rejecte .....

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