The ITO 2 (2), V. M/s Balkishan Bansal,

ITA 147/IND/2009

• Counselvise Citation: [2009] 115 COUNSELVISE.COM (IT) 1403 (ITAT-INDORE)
• Duration Of Justice: 7 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-11-2009
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 09-11-2009
• Assessment Year: 2005-2006
• Appeal Filed On: 23-03-2009
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: APRANA KARAN
• Section: 133A; 154

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL INDORE BENCH : INDORE BEFORE SHRI JOGINDER SINGH, J.M. AND SHRI V.K.GUPTA,A.M. PAN NO. : AADFB-8234G9 I.T.A.NO. 147/IND/2009. INCOME TAX OFFICER, 2 (2) BHOPAL M/S BALKISHAN BANSAL & SONS, LALWANI GALI,SARAFA CHOWK, BHOPAL VS APPELLANT RESPONDENT APPELLANT BY : SMT APRANA KARAN, SR. DR RESPONDENT BY : NONE O R D E R PER V.K.GUPTA, AM THIS APPEAL, FILED BY THE REVENUE, ARISES OUT OF OR DER OF LD. CIT DATED 02.01.2009 FOR THE ASSESSMENT YEAR 2005-06. 2. NONE APPEARED ON THE BEHALF OF THE ASSESSEE, HOW EVER, AN ADJOURNMENT APPLICATION WAS FILED WHICH WAS REJECTE D DUE TO THE NATURE OF ADDITION INVOLVED IN THIS APPEAL. THEREAFTER WE PRO CEEDED TO HEAR THE LD.DR FOR DISPOSING OF THIS APPEAL ON MERITS. 2 3. GROUND, RAISED BY THE REVENUE, READS AS UNDER:- ON THE FACT AND CIRCUMSTANCE OF THE CASE, THE CIT (A) HAS ERRED IN DELETING THE ADDITION OF RS. 739396/- MADE BY THE ASSESSING OFFI CER ON ACCOUNT. 4. THE FACTS, IN BRIEF, ARE THAT THE ASSESSEE IS DE ALING GOLD AND SILVER ORNAMENT /BULLION. THERE WAS A SURVEY U/S 133A AT T HE BUSINESS PREMISES OF THE ASSESSEE WHEREIN VARIOUS BOOKS OF ACCOUNT WERE IMPOUNDED. THE AO, IN COURSE OF ASSESSMENT PROCEEDINGS, COMPARED THE STOC K OF GOLD JEWELLERIES AND SILVER COUNTED PHYSICALLY DURING THE COURSE OF SURVEY WITH THE STOCK OF THESE ITEMS SHOWN IN THE BOOKS OF ACCOUNT AND FOUND THAT GOLD JEWER WAS IN EXCESS BY A QUANTITY OF 1219.120 GM AND THERE WAS S HORTAGE OF 1.960 KG OF SILVER. THE ASSESSEE, AS PER ASSESSMENT ORDER, ACCE PTED UNDISCLOSED INVESTMENT IN THE PURCHASE OF SUCH EXCESS GOLD JEWE LRY WHICH WAS ADDED BY AO AT RS. 739396/-AS PER THE RATE OF GOLD AS ON 31. 03.2004. THE AO ALSO MADE AN ADDITION ON ACCOUNT OF SHORTAGE OF SILVER B Y HOLDING THAT SUCH QUANTITY HAD BEEN SOLD BY THE ASSESSEE OUT OF THE B OOKS AND MADE AN ADDITION OF RS. 23069/- ON THIS ACCOUNT. AGGRIEVED BY THIS, THE ASSESSEE PREFERRED AN APPEAL BEFORE THE CIT (A) WHEREIN IT W AS SUBMITTED THAT THE EXCESS STOCK OF THE GOLD HAD ALREADY BEEN SURRENDER ED BY THE ASSESSEE BY INCLUDING A SUM OF RS. 6,02,555/- UNDER THE HEAD O THER INCOME WHICH WAS CREDITED IN THE P & L ACCOUNT AND A COPY OF LEDGER ACCOUNT HAD ALSO BEEN FURNISHED BEFORE THE AO, THEREFORE, SEPARATE ADDITI ON MADE BY AO IN THE COURSE OF ASSESSMENT PROCEEDING WAS NOT JUSTIFIED A ND AMOUNTED TO DOUBLE ADDITION OF THE SAME INCOME. HE WAS ALSO BROUGHT TO THE NOTICE OF THE LD CIT (A) THAT AN APPLICATION U/S 154 WAS ALSO FILED WHICH WAS ALSO NOT DISPOSED OFF. THEREAFTER, THE ASSESSEE ALSO OBJECTE D TO RATE OF GOLD ADOPTED 3 BY THE AO WHICH RESULTED INTO AN ADDITIONAL INCOME OF RS. 1236841/- . THE LD. CIT (A), AFTER CONSIDERING THESE, FACTS, DELETE D THE ADDITION ON BOTH COUNTS. AGGRIEVED BY THIS, THE REVENUE IS IN APPEAL BEFORE US. 5. THE LD. DR NARRATED THE FACTS AND PLACED STRONG RELIANCE ON THE ORDER OF AO. 6. WE HAVE CONSIDERED THE SUBMISSION MADE BY LD DR AND ORDERS OF REVENUE AUTHORITIES. IT IS NOTED THAT WHATEVER EXCE SS STOCK OF GOLD JEWELLERY FOUND DURING THE COURSE OF SURVEY HAS BEEN SURRENDE RED BY THE ASSESSEE AS ITS INCOME WHICH HAVE BEEN INCLUDED UNDER THE HEAD OTH ER INCOME IN THE P& L ACCOUNT, HENCE, NO FURTHER ADDITION CAN BE MADE A S THAT WOULD AMOUNT TO DOUBLE ADDITION. CONSEQUENTLY, THE ADOPTION OF RATE OF GOLD AS ON 31.3.2004 DOES NOT ARISE. IN THIS VIEW OF THE MATTER, THIS GR OUND OF REVENUE IS DISMISSED. 7. IN THE RESULT, THE APPEAL FILED BY THE REVENUE I S DISMISSED. 8. ORDER PRONOUNCED IN THE OPEN COURT ON 12.11.2009 SD/- SD/- (JOGINDER SINGH) (V.K.GUPTA) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED : 12.11.2009 *KONGE* 4