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TMI Blog2024 (6) TMI 1449X X X X Extracts X X X X X X X X Extracts X X X X ..... artly allowed the appeal deleting additions made by the Assessing Officer [hereinafter referred to as "the AO"] in his order passed under section 143(3) of the Income Tax Act, 1961 [hereinafter referred to as "the Act"]. Facts of the Case: 2. The assessee-firm is a goldsmith engaged in the business of dealing in gold, silver ornaments/jewellery, and trading in fine gold bars. The assessee filed its original return of income on 26-10-2017 declaring total income of Rs. 22,15,250/-. The case was selected for complete scrutiny. The case was selected mainly for the reason that during the period of demonetization, the assessee deposited Rs. 6,28,34,000/- in old currency in two bank accounts. A show-cause notice was issued by the AO to the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the circumstances of the case and in law, the Ld. CIT(A) was justified in deleting the addition of Rs. 8,50,000/- made by the AO on account of unexplained credits? 3. Whether on the facts and in the circumstances of the case and in law, the Ld. CIT(A) was justified in deleting the addition of Rs. 34,49,794/- made by the AO on account of disallowance u/s 37(1) of job work expenses? 4. The appellant craves leaves to add, modify, amend or alter any grounds of appeal at the time of, or before, the hearing of appeal. It is prayed that the order of the CIT(A) on the above issues be set-side and that of the Assessing Officer be restored." On the grounds of appeal: 5. The Ld. Departmental Representative (DR) heavily relied on the order ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The Ld. Counsel for the assessee further contended that the AO has added Rs. 75,00,000/- on ad-hoc basis u/s. 68 of the Act and the AO cannot make such ad-hoc addition on the basis of estimation. Unless the cash in hand is rejected, no such addition u/s. 68 of the Act cannot be made even if the cash balance is in the form of old currency. 6.3. Regarding the non-availability of the details relating to gold sent for job-work and returned from them in the stock register, the Ld. Counsel for the assessee stated that the details were submitted before the Ld. CIT(A) for consideration and upon obtaining the remand report, the Ld. CIT(A) passed his order. 6.4. The Ld. Counsel for the assessee placed reliance on the following judicial pronouncemen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... edabad). The Tribunal emphasized that additions must be based on evidence, not on assumptions or presumptions. 7. We have heard the rival contentions. Upon careful consideration of the submissions and evidence, we find that the assessee has maintained consistent stock levels and recorded all transactions in the books of accounts. No discrepancies were found in the cash book, bank book, purchases, monthly stock, or audited books of accounts by the AO. 7.1. We have also noted the facts that the cash deposit in question is part of the sale which is explained by the assessee. The AO has not doubted corresponding purchases and quantitative details. The profit element of such sale is already offered for taxation by the assessee. Income so decla ..... X X X X Extracts X X X X X X X X Extracts X X X X
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