Contact us   Feedback   Subscription   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Extracts
Home List
← Previous Next →

2016 (7) TMI 505 - ITAT BANGALORE

2016 (7) TMI 505 - ITAT BANGALORE - TMI - VDIS declarations - genuity of gold sold - Held that:- 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 our opinion, these evidence do tilt the case in favour of the assessees. - Assessees had done whatever possible, within their means to show that the g .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

not have been sold by the assessees is only a surmise and cannot dislodge 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 - .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

s 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 Income declared Rs. 1. Shri. Srinikraj V. Kataria 74,780/- 2. Shri. S. B. Sankannavar 2,78,126/- 3. Shri. Chandrakant S. Sankannavar 2,87,340/- 4. Shri. Ashok S. Sankannavar 3,38,210/- 03. During the course of assessment proceedings it was noted by the AO that these assessees had credited the following sums as sal .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

VDIS, 1997 (VDIS in short). Under this scheme assessees had declared jewellery valued as under: Table No.3 Sl. No Name of the assessee Gold jewellery Rs. Silver utensils Rs. Diamonds Rs. 1. M/s. Srinikraj V. Kataria 3,36,219 Nil - 2. Shri. S. B. Sankannavar 62,558 10,572 - 3. Shri. Chandrakant S. Sankannavar 1,69,980 18,519 45,000 4. Shri. Ashok S. Sankannavar 2,19,992 18,596 40,000 05. When queries were raised about the source of the gold/bullion sold, assessees stated before the AO that these .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

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 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ncome. 07. Aggrieved by this, assessees had moved before this Tribunal and this Tribunal had dismissed such appeals with following observations : "I have carefully considered the matter. If I go only by the evidence in the present case, I must confess that / must accept the assessee's claim because it is supported by the evidence such as the bill issued by Mahalaxmi Jewellers, the fact that amount was reached by the assessee through cheque etc. There is also a letter written by Shri Sir .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ially in paragraph 6.4 of the order where certain facts have been referred to discredit the version of Mahalaxmi Jewellers. In this paragraph even the letter of the landlord dated 23.10.97 has been referred to and it has been remarked by the Tribunal that this letter does not . clearly say as to when Mahalaxmi Jewellers have also been adverted to in this paragraphs and it has been held that the transaction which Mahendra Kothari and others had with Mahalaxmi Jewellers have not been proved to be .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

s 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 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

.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 Court, cases were again considered by the AO. Notices were issued to the assessees. Claim of the assessees were that the gold ornaments which were given for melting with M/s. Balaji Refinery, Hubli, was the very same which was shown by them in VDIS declarations. Assessees again relied on the sale bills of MLJ for sale of gold an .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

lared in VDIS comprised of antique items and assessees who were financially sound would not have sold such old gold jewellery. Further as per the AO, if at all the assessees wanted to sell the jewellery they would have sold it directly without melting and shaping it as bullion. Thus he reached a conclusion that what was sold by the assessees were not the gold jewellery which were declared by them in VDIS. He did not accept the source for the credits. Additions were made once again. 10. Aggrieved .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

y work since 15 years. Further as per the CIT (A), the Inspector deputed by the AO had enquired near Jain Mandir, Keshavapur, Hubli, as well as Azad Colony, Hubli, where, as per assessees, M/s. Balaji Refinery functioned. As per the CIT (A), Inspector had also verified with the owners of various buildings in Keshavpur, who vouched that no such building named, Azad Complex, existed nor they new any Balaji Refinery. Thus according to CIT (A) assessees were unable to show that the gold and silver j .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

rt 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 bul .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

nversion to pure minerals through M/s. Balaji Refinery. Ld. AR has also placed before us copies of assessment orders passed by the AO in the case of one Shri. Shailesh V. Patel and Shri. Vithalbhai N. Patel, for the assessment year 1998-99, where on similar set of facts the credits were accepted. 12. Per contra, Ld. DR strongly supporting the orders of authorities below submitted that AO had done detailed enquiries into the bills submitted by the assessees for melting the gold jewellery as well .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

y made by the AO and confirmed by the CIT (A). 13. We have perused the orders and heard the rival contentions. Evidence furnished by the assessees in support of their contention that what were sold by them was the same gold jewellery after converting it into bullion has been perused by us. Case of one of the assessees, namely Shri. Srinikraj V. Kataria(HUF), has been taken as an example. The valuation report dt.23.12.1997, bill from M/s. Balaji Refinery, dt.25.01.1998 and and the purchase invoic .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

during the course of second round of proceedings. Inspector s report relied on by the AO was based on an enquiry done more than 15 years after the 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. Howe .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version