TMI Blog2016 (7) TMI 505X X X X Extracts X X X X X X X X Extracts X X X X ..... the evidence filed by the assessee. Further there is nothing on record to show that the gold jewellery which were sold by the assessee were antique in nature. In such circumstances, it is of the opinion that the lower authorities fell in error in disbelieving the source for credits shown by the assessees concerned. No hesitation in deleting the additions made in the hands of the assessee. - Decided in favour of assessee - ITA No.15/Bang/2016, ITA No.24/Bang/2016, ITA No.25/Bang/2016, ITA No.26/Bang/2016 - - - Dated:- 10-6-2016 - ABRAHAM P. GEORGE, ACCOUNTANT MEMBER For The Assessees : Shri. Ravishankar, Advocate For The Revenue : Shri. K. R. Narayan, JCIT ORDER PER ABRAHAM P. GEORGE, ACCOUNTANT MEMBER : These are appeals by different assesses for assessment year 1998-99 against orders of CIT (A), Hubli. Since the facts leading to these appeals fall within the same compass, all these appeals are dealt with through this common order. 02. Facts of the case are that all these assessee had filed returns for the impugned assessment year declaring income, as under : Table No.1 Sl.No. Name of the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s were raised about the source of the gold/bullion sold, assessees stated before the AO that these were the jewellery declared under VDIS Scheme after converting it to bullion. However, AO did not accept this contention of the assessees. According to him, M/s. Mahalakshmi Jewellers (MLJ in short) to which assessees had claimed to have sold the gold never worked from the address given by the assessee. As per the AO, landlord of the building whose premises were shown as the address of M/s. MLJ had stated that no such lease was given by them to MLJ and no possession was given. As per the AO, the said MLJ occupied the premises only during the period 27.03.1998 to 30.11.1998. Further as per the AO, M/s. Balaji Refinery, through which assessees had claimed the jewellery to have been assayed into bullion never existed. As per the AO, a large number of similar assessees who had declared gold jewellery through VDIS return, had claimed sale of such gold through MLJ for showing source. The inference drawn by the AO was that such sales could not have been effected in a short span of four months time and MLJ could not have done business to the tune of ₹ 20 crores in such a short span of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... llers was a firm which actually existed on the day on which the assessee claims to have sold his jewellery to it. I cannot close my eyes to the findings, recorded by the Tribunal in the cited order, which was brought to my notice fairly by the learned counsel for the assessee himself, and hold relying only on the evidence brought before me, that the sale by the assessee to Mahalaxmi Jewellers has been proved. /therefore hold, respectfully following the order of the Tribunal cited above that despite the documentary evidence filed by the assessee in the present case, the claim cannot be accepted in view of the findings recorded by the Tribunal in the above order regarding the existence of Mahalaxmi Jewellers. I accordingly confirm the addition and dismiss the appeal. 08. Assessees thereafter challenged the order of the Tribunal before the Hon ble jurisdictional High Court. Hon ble jurisdictional High Court relying on its own judgment in the case of one Smt. Kailashi Devi G. Agrawal [ITA No.186/2004], where also fact-situation was similar, held as under in its judgment, dt.22.09.2008 : 09. Pursuant to the above directions of the Hon ble jurisdictional High Co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d and converted through the concern called M/s. Balaji Refinery, nor were they able to show that any sale thereof were effected through any concern called MLJ. Thus the CIT (A) upheld the order of the AO. 11. Now before us, Ld. AR submitted that the onus on the assessees to show that gold and silver jewellery declared in VDIS returns were melted and converted into bullion and sold was discharged. Hon ble jurisdictional High Court had clearly held that if the assessees were able to show that the sales were of the very same gold and silver jewellery which were declared in VDIS, then the source for the credits stood explained. As per the Ld. AR, M/s. Balaji Refinery had clearly given the details of the jewellery items which were given to them for melting. Labour charges were also paid by the assessees. Ld. AR submitted that copies of bills issued by M/s. Balaji Refinery clearly proved conversion of the ornaments into bullion. As per the Ld. AR, assessees concerned had converted the gold and silver jewellery to bullion since if sold directly as jewellery the items would have fetched much lesser amount. As per the Ld. AR if on an enquiry conducted after twelve years by the AO, M/s. B ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e event. There was no way assessees could ensure that M/s. Balaji Refinery continued to do its business all through. Much reliance has been placed by the AO on a letter issued by Gold and Silver Refinery Welfare Association, Hubli, wherein it was mentioned that no refinery called M/s. Balaji Refinery, did any refinery work in Hubli since 15 years. However, it is not necessary that every refinery should be a member of an association. A glance at the bill issued by M/s. Balaji Refinery does show that it was holding a licence. A Look at the purchase bill issued by MLJ show that it was having KST and CST registration numbers. These registrations were effective from 23.10.1997. In my opinion, these evidence do tilt the case in favour of the assessees. Assessees had done whatever possible, within their means to show that the gold jewellery sold by them were the same gold declared in VDIS, after converting it into bullion. Assessees had submitted copies of bills issued by M/s. Balaji Refinery which did show similar details of gold jewellery as returned in the VDIS. In such situation we are of the opinion that assessees had discharged their onus to show that the gold sold by them were the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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