TMI Blog2021 (2) TMI 273X X X X Extracts X X X X X X X X Extracts X X X X ..... urvey disclosure of ₹ 10 lakhs), would meet the ends of justice. The same shall be deemed to have covered all the alleged shortfalls as well. Both parties get part relief in foregoing terms. It is also made clear that our instant estimation shall not be taken as a precedent in any other assessment year. Necessary computation to follow as per law. - ITA No. 829/Hyd/2018 and 238/Hyd/2019 - - - Dated:- 29-1-2021 - S. S. Godara, Member (J) And Laxmi Prasad Sahu, Member (A) For the Appellant : Rohit Mujumdar, DR For the Respondents : K. P. Gangi Reddy, AR ORDER These Revenue's and assessee's cross-appeals for AY. 2012-13 arise from the CIT(A)-Tirupati's order(s) dated 28-02-2018 passed in case No. 045/201 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as excess gold ornaments. While doing so, the AO had ignored the claim of the appellant that gold bullion weighing 3950.00 gms and old gold weighing 6781.7571 gms, available as per books of account, but not physically found at the time of survey action, leading to non-consideration of deficit stock. The reason given by the AO against non-consideration of deficit stock of gold bullion and old gold was that there was no sufficient evidence found at the time of survey about conversion of old gold and gold bullion into the stock of gold jewellery. However, the AR of the appellant vehemently contested against non-consideration of conversion of gold bullion weighing 3950 gms and old gold jewellery weighing 6781.757 gms, on the ground that n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... her, I have received gold bullion of 2 kgs from M/s. dp Bullions, Nellore vide bill No. 2655 dated 07-06-2011 and 3048 dated 15-06-2011 and the same was issued to the gold smiths for making ornaments and I have received the gold ornaments in respect of these 2 kgs gold bullion. Q.6) You have stated that you have given bullion to various workers Chennai, Mumbai, Nellore and Tirupati. What is the modus operandi for handing over the bullion to the workers? Ans. I will personally go out to the various places and hand over the bullion to the workers and the workers will come out to my shop personally to hand over the gold ornaments. When I issue bullion for making gold ornaments, I will take a receipt from the worker and I will also si ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... old ornaments. The partner of the firm had also given the names and addresses of goldsmiths/achaaries, who come to the shop of the assessee to hand over gold ornaments. The fact that there was no physical stock found in respect of the bullion weighing 3950 gms and old gold weighing 6781.757 gms as against the book stock clearly point to the issuance of these items to goldsmiths. The AO did not make any effort in the course of assessment' proceedings about the veracity of the claims of assessee about the issuance of gold bullion and old gold to workers for gold making. In view of the repeated claims of the assessee Firm on the issue of old gold and gold bullion to gold smiths for making gold ornaments, AO should have considered these ite ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... chase of silver in response to Question No. 8. Therefore, I am in agreement with the addition made by the AO on account of silver ornaments and same is confirmed . 4. Learned departmental representative vehemently contended during the course of hearing that the CIT(A) has erred in law and on facts in deleting the impugned excess gold addition made by the Assessing Officer involving a sum of ₹ 2,33,15,262/- going by the survey records in question. He fails to dispute the CIT(A)'s clinching finding of fact that the assessee had very well filed reconciliation of its gold stock during the course of assessment as well. It is further not in dispute that if the reconciliation statement is accepted as correct, no addition may be warra ..... X X X X Extracts X X X X X X X X Extracts X X X X
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