TMI Blog2022 (8) TMI 221X X X X Extracts X X X X X X X X Extracts X X X X ..... with by making addition by observing that the explanation of the respondent-assessee firm cannot be believed for the reason that stock received from the customers in respect of the gold, diamond, silver jewelleries either under gold deposits scheme or gold received for making ornaments were not accounted in the books of accounts of the respondent-assessee firm. This reasoning of AO has no legs to stand in view of the well-settled position of law that the presence and absence of entries in the books of accounts do not determine the true nature of the transaction. Reference in this regard can be made to the decision of Kedarnath Jute Mfg. Co. Ltd. [ 1971 (8) TMI 10 - SUPREME COURT] - Further, it is not even the case of the Assessing Offi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4 at total income of Rs.1,73,50,820/-. Subsequently, the survey operations were conducted in the business premises of the respondent-assessee firm on 07.10.2013. During the course of survey operations, the Assessing Officer found some discrepancies in stock as per the books of accounts and stock as per register maintained through a software application i.e. ACME Software . During the course of survey proceedings, the Assessing Officer had estimated the such difference of stock as on 31.03.2013 at Rs.4,11,88,184/-. The details of which are as under :- Sr. No. Item Stock as per audit report Stock as per system Difference Value ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... M Software, it was explained by the respondent-assessee that the respondent-assessee firm had accepted the deposits of gold from the customers under the gold deposits scheme and for making the ornaments. Such gold, diamond, silver jewelleries were not forming a part of the stock of the respondent-assessee firm, hence not reflected in the Profit Loss Account, whereas in the software maintained in the computer i.e. ACEM Software, the stock of the customers lying with the respondent-assessee firm i.e. being gold received from customers under the gold deposits scheme or for making ornaments is shown as part of the stock of the assessee firm. It is also mentioned that the stock received from customers is kept under separate box. The respondent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssing Officer. 5. Being aggrieved by the decision of the ld. CIT(A), the Revenue is in appeal before us in the present appeal. 6. The ld. Sr. DR submits that the ld. CIT(A) ought not to have accepted the explanation given by the respondent-assessee firm that the difference between the stock as per the computer software i.e. ACME Software and the stock shown in the Profit Loss Account, inasmuch as, the respondent-assessee firm was found in possession of excess stock which were not recorded in the books of accounts of the respondent-assessee firm. It is further submitted that during the course of assessment proceedings, the respondent-assessee firm could not explain the discrepancies with evidence and the fact that the respondent-asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 9 to 90 of the Paper Book. He also filed before us the copies of the applications received from the customers under gold deposits scheme and also the copies of details in respect of gold received from customers for making the gold ornaments. He further submits that the Assessing Officer had failed to consider the melting loss of gold at 2026 gms. Finally, he submits that the order of the ld. CIT(A) is based on the proper appreciation of material on record and thus pleaded that no interference with the order of the ld. CIT(A) is called for. 8. We heard the rival submissions and perused the material on record. The issue in the present appeal relates to the addition on account of alleged discrepancies between the stock as per the Profit L ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed from the customers were also part of the record with such details like photograph of the customers, their communication address, identify proof, PAN card and mobile numbers etc.. The respondent-assessee firm had been paying interest @ 4% on gold received under gold deposits scheme on which tax was deducted. Thus, it appears that the respondent-assessee firm had discharged primary onus lying upon it by explaining the difference between the stock as per Profit Loss Account and stock as per stock register maintained through computer software ACME Software . On receipt of the explanation, the Assessing Officer had not done anything to verify the veracity of the explanation of the respondent-assessee firm. He simply proceeded with by makin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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