2016 (7) TMI 1536

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..... e appellant denies to be assessed at Rs. 4,09,310/- against the declared total income of Rs. 49,110/- on the facts and circumstances of the case.   3. The learned CIT (A) is not justified in confirming the addition of Rs. 3,60,200/- under section 68 of the Act on the facts and circumstances of the case. 4. The learned CIT(A) was not justified in confirming the finding of the AO that the nomenclature as per the declaration differed from the sale invoice and hence the said sale was out of gold, silver and diamond 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 findin .....

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..... the Assessing Officer has noted that certain introduction of cash was explained by the assessee to have been introduced on account of sale of gold, silver and diamonds. It was also contended by the assessee that under VDIS, the assessee has declared the gold ornaments/jewellery, silver and diamonds. The declaration was accepted under VDIS and later on gold, silver and diamond jewellery was converted into gold and silver bullion and diamonds which were sold and the sale proceeds were introduced in the books of account. The AO has raised a technical objection by stating that the items declared under VDIS were not the same, which were sold and the sale proceeds were introduced in the books of account. 4. When the matter reached the Hon'ble .....

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..... llery in different form under VDIS, but in sale bill the assessee has sold gold & silver bullion and diamonds separately. The assessee has filed evidence with respect to conversion of gold and silver jewellery into gold bullion & silver bullion and diamonds. 9. Since the same quantity which was disclosed under VDIS was sold, I find no justification in making the addition on introduction of sale proceeds in the books of account. Once the Revenue has accepted the declaration  under VDIS and accepted the tax deposited by the assessee, it should not have made a further addition on account of introduction of sale proceeds of the said jewellery in the books of account. I therefore find no merit in the addition made by the revenue authoriti .....

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