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2016 (8) TMI 73 - ITAT BANGALORE

2016 (8) TMI 73 - ITAT BANGALORE - TMI - Addition u/s 68 - deceleration under VDIS scheme - whether items sold in the present year is the same which was declared by the assessee under VDIS - Held that:- As per page No. 2 of the original assessment order available on page 8 of the paper book, out of ₹ 560,730/- being total sales consideration, sale of gold is for ₹ 185,730/- and sale of diamonds is for ₹ 375,000/-. Regarding sale proceeds of gold, it is of the opinion that since .....

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rice of the price of Diamond mainly depends upon quality of the Diamonds being its cut and colour apart from its size. - Regarding this sale of Diamonds for ₹ 375,000/-, do not know the size and the cut and colour of diamonds are also not known because the same is not mentioned in the VDIS declaration. Hence it is seen that the assessee has failed to establish that the diamonds sold in the present year and declared under VDIS are same. Hence, feel that no interference is called for reg .....

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of the ld.CIT(A) in respect of diamond issue. - Decided against assessee. - ITA No.217 (B)/2016 - Dated:- 15-7-2016 - SHRI A.K.GARODIA, AM (SMC) For The Assessee : Shri S.V.Ravishankar, Advocate For The Revenue : Smt. Swapna Das, JCIT ORDER PER SHRI A.K.GARODIA, AM: This is assessee s appeal directed against the order of the ld.CIT(A), Hubli dated 30-11-2015 for the assessment year 1998-99. 2. The grounds raised by the assessee are as under; 1 The order of the CIT (A) in so far as they are again .....

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g of the AO that the nomenclature as per the declaration differed from the sale invoice and hence the said sale was out of diamonds different from the one in the declaration made on the facts and circumstances of the case. 5.The learned CIT(A) was not justified in relying on the observations made in the earlier appellate orders to arrive at a finding that the declaration stood unproved and hence the diamonds sold were not out of the declaration made. 6 The learned CIT(A) was not justified on fac .....

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is not in accordance with law as the rate, amount and method for calculating interest is not discernible from the order of assessment. 8 The appellant craves leave to add, alter, modify, delete or substitute any or all of the grounds and to file a paper book at the time of hearing the appeal. 9 In view of the above and other grounds that may be taken at the time of the hearing the appeal, the appellant prays that the appeal be allowed in the interest of justice and equity. 3. It was submitted b .....

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hat are sold under the transactions declared in the regular return are the same goods which were declared in the application filed under the VDIS Scheme 1997 and accepted by the revenue then the question of taxing the transactions declared in the regular returns u/s 68 of the IT Act would not arise and tax has to be imposed u/s 45 of the IT Act, 1961. He submitted that in the present proceedings, the AO and the ld. CIT(A) has repeated the same addition and therefore, the addition made by the low .....

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the sale transactions and claimed by the assessee and what is declared in the application filed under VDIS 1997 are different. She submitted that no interference is called for in the order of the ld. CIT (A). 5. At this juncture, a query was raised by the Bench regarding sale bill and valuation report submitted with VDIS declaration statement. In reply, it was submitted by the ld. AR of the assessee that the jewellery declared under VDIS 1997 were converted into Gold and diamonds as per the conv .....

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Act, 1961 in the present year. Hence in the light of the direction of the Hon ble Karnataka High Court, I examine the facts of the present case. As per the valuation report submitted by the ld. AR being copy submitted with the declaration under VDIS 1997 as available on page-4 of the paper book, the assessee has made declaration of diamonds as under; Sl.No Carats Pieces Amount 1. 8.50 85 68,000 2. 7.00 70 42,000 3. Net Weight of Gold 578.160 Gms. 123,360 Total……….. 2,33,360 .....

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ale of gold should be allowed. I direct the A.O. accordingly because gold sold and declared under VDIS cannot be different and this is not the case of the revenue that gold sold is more that gold declared under VDIS 1997. 8. Regarding Diamonds, mere Carat quantity alone cannot determine that the Diamond sold and declared under VDIS 1997 are same because the price of the price of Diamond mainly depends upon quality of the Diamonds being its cut and colour apart from its size. 9. Regarding this sa .....

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he ld.AR of the assessee. First Tribunal order is rendered in the case of Shri Shyam B Habib Vs ITO (Supra) and in para-5 of the Tribunal order, it is noted by the Tribunal that the weight of Gold and silver bullion is the same but there is no such finding that even in the absence of size, cut and colour of the diamonds, it can be accepted that the diamond sold and declared under VDIS are same merely on this basis that Carat quantity is tallying. Hence, this Tribunal order cited by the ld. AR of .....

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