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TMI Blog2021 (4) TMI 910X X X X Extracts X X X X X X X X Extracts X X X X ..... b. Secondly, the assessee is further aggrieved by the addition of Rs. 4,88,592/- on account of alleged under valuation of closing stock of gold and silver coins. 3. Briefly stated, the facts of the case are that the assessee is engaged in trading in gold, silver and diamond jewellery. The assessee company has franchisee of Tanishq. Return for the year was electronically filed on 30.09.2010 declaring income of Rs. 42,04,380/-. Return was selected for scrutiny assessment and accordingly, statutory notices were issued and served upon the assessee. 4. During the course of scrutiny assessment proceedings, the Assessing Officer noticed that the assessee has paid commission on sales amounting to Rs. 7,91,364/- as under: NAME ADDRESS AMOUNT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ination. The Assessing Officer further observed that the assessee has not mentioned the rate of commission paid to the ladies and the basis of such commission. 11. The assessee has been consistently harping upon the fact that the payments have been made through account payee cheques subject to TDS. 12. Being not convinced with the explanation of the assessee, the Assessing Officer made an addition of Rs. 7,91,364/- 13. Proceeding further, the Assessing Officer asked the assessee to furnish the basis of valuation of the closing stock. The assessee furnished the details explaining that the stock was valued at cost or net realizable value whichever is less and since the purchase cost was lower, therefore, the stock has been valued at purcha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... garwal did appear before the Assessing Officer whose statements were recorded by him and they have confirmed the receipt of sales commission. Their statements are exhibited at pages 69 to 76 of the paper book. 19. Since the two ladies have confirmed the transactions by statements recorded by the Assessing Officer, we do not find any reason why addition should be made. We, accordingly, direct the Assessing Officer to delete the addition of commission paid to Ayushi Goyal and Sangeeta Aggarwal. 20. In respect of the other ladies, namely Si lky Aggarwal, Sonu Goyal and Priyanka Goyal, they may have been married, but nothing prevented them to furnish their statements by way of affidavits. Merely because the payments have been made through acc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s below, we deem it fit to restore this issue to the file of the Assessing Officer. The assessee is directed to demonstrate that the stock has been valued at cost price which is in consistence with its practice in earlier year and the Assessing Officer is directed to examine the details afresh and if satisfied that the assessee has been consistently valuing its stock at cost or market price, whichever is less, then no addition needs to be made on this account. 23. However, if the Assessing Officer is not satisfied with the details of the assessee, he may decide the issue afresh as per provisions of law. Accordingly, Ground No. 2 is allowed for statistical purposes. 24. In the result, the appeal of the assessee in ITA No. 4654/DEL/2016 is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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