The ITO, Ratlam V. Shri Bapulal Punamchand Vani, Jobat

ITA 356/IND/2010

• Counselvise Citation: [2011] 140 COUNSELVISE.COM (IT) 47882 (ITAT-INDORE)
• Duration Of Justice: 1 year(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-06-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2005-2006
• Appeal Filed On: 31-05-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ARUN DEWAN
• Assessee Lawyers: S S DESHPANDE
• Keywords: Unexplained investment; Loose papers
• Section: 133A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL , INDORE BENCH, INDORE BEFORE SHRI JOGINDER SINGH, J.M. AND SHRI R.C.SHARMA, A.M. PAN NO. : ADEPV7076J I.T.A.NO. 352 / IND /20 10 A.Y. : 2005 - 06 SHRI RAMKISHAN VANI AND SHRI LAXMINARAYAN VANI, L/H OF LATE SHRI B APULAL VANI, ACIT, RATLAM 8, SUBHASH MARG, VS JOBAT, DISTT. JHABUA APPELLANT RESPONDENT I.T.A.NO. 356 / IND /20 10 A.Y. : 2005 - 06 ITO, SHRI RAMKISHAN VANI AND SHRI LAXMINARAYAN VANI OF SHRI BAPULAL VANI, WARD 2, VS 8, SUBHASH MARG, RATLAM J OBAT, DISTT. JHABUA APPELLANT RESPONDENT ASSESSEE BY : SHRI S. S. DESHPANDE, C. A. DEPARTMENT BY : SHRI ARUN DEWAN, SR. DR - : 2 : - 2 O R D E R PER R. C. SHARMA, A.M. TH ESE ARE THE CROSS APPEALS FILED BY THE ASSESSEE AND REVENUE ARE DIRECTED AGAINST THE ORDER OF CIT(A) DATED 22.3.2010 FO R THE ASSESSMENT YEAR 200 5 - 06 . 2. RIVAL CONTENTIONS HAVE BEEN HEARD AND RECORDS PERUSED. 3. THE FACTS OF THE CASE ARE THAT THE ASSESSEE IS ENGAGED IN PAWNING AND MONEY LENDING BUSINESS. A SURVEY U/S 133A OF THE INC OME - TAX ACT, 1961, WAS CONDUCTED AT HIS BUSINESS CUM RESIDENCE PREMISES. AT THE TIME OF SURVEY SHRI BAPULAL VANI, ASSESSEE WAS PRESENT AT THE ABOVE SAID PREMISES BUT HIS STATEMENT WAS NOT RECORDED BY THE SURVEY TEAM ON 3.3.2005 ( I.E. DATE OF SURVEY). THE SURVEY PARTY, AFTER PREPARING ALL LISTS AND INVENTORIES ETC., RECORDED THE STATEMENT OF SHRI RAMKISHAN VANI, WHO HAPPENS TO BE THE SON OF THE APPELLANT ASSESSEE. STATEMENT ON OATH OF ASSESSEE S SON WAS RECORDED ON - : 3 : - 3 15.03.2005. THE ASSESSEE S SON ON BEHALF OF HIS FATHER MADE THE FOLLOWING DISCLOSURES : - (A) UNACCOUNTED CASH RS. 6,00,000/ - (B) UNACCOUNTED INVESTMENT IN MORTGAGE OF SILVER RS. 50,00,000/ - (C ) UNACCONTED INVESTMENT IN MORTAGE OF GOLD RS. 55,000/ - (D) UNACCOUNTED INVESTMENT FOUND AS PER LO OSE PAPERS RS. 1,25,000/ - (E) UNACCOUNTED INVESTMENT IN FDRS RS. 17,30,000/ - TOTAL RS. 75,10,000/ - 4. THE RETURN SHOWING INCOME OF RS. 18,96,550/ - WAS FILED ON 22.11.06 IN WHICH DISCLOSURE OF RS. 18 LACS WAS MADE UNDER THE HEAD UNACCOUNTED INVESTMENT I N MORTGAGE OF SILVER AND NO OTHER DISCLOSURE UNDER ANY OTHER HEAD WAS MADE BY THE ASSESSEE. IN THE ASSESSMENT PROCEEDINGS SINCE THE ASSESSEE NEITHER ATTENDED NOR FILED ANY REPLY, THE ASSESSMENT WAS COMPLETED BY THE ASSESSING OFFICER AT TOTAL INCOME OF RS. 62,15,900/ - IN WHICH THE FOLLOWING ADDITIONS WERE MADE : - (A) ADDITIONS ON ACCOUNT OF UNACCOUNTED INVESTMENT IN MORTAGE OF SILVER RS. 32,00,000/ - (B) ADDITIONS ON ACCOUNT OF UN EXPLAINED CASH RS. 6,06,850/ - - : 4 : - 4 ( C) ADDITIONS ON ACCOUNT OF UNACCOUNTED INVE STMENT IN INVESTMENT IN FDR RS.3,32,500/ - (D) ADDITIONS ON ACCOUNT OF UNACCOUNTED INVESTMENT IN MORTAGE OF GOLD. RS. 55,000/ - (E ) ADDITIONS ON ACCOUNT OF UNACCOUNTED INVESTMENT FOUND IN LOOSE PAPERS 1,25,000/ - TOTAL RS. 43,19,350/ - 5. AFTER CONSIDERING THE ELEMENT OF IMPURITY IN SILVER ORNAMENTS, THE CIT(A) AFTER HAVING FOLLOWING DETAILED DISCUSSION AND OBSERVATION RESTRICTED THE ADDITION ON ACCOUNT OF INVESTMENT IN MORTGAGE OF SILVER TO THE EXTENT OF RS. 11,94,860/ - : - ON CONSIDERING THE FACTS AND SUB MISSIONS OF THE ASSESSEE AS WELL AS BY THE ASSESSING OFFICER IT IS OBSERVED THAT THE ASSESSEE S CONTENTION THAT NO WEIGHMENT OF SILVER ORNAMENTS HAD TAKEN PLACE IS NOT SUPPORTED WITH THE FACTS OF THE CASE. THEREFORE, THE WEIGHMENT WHICH HAS BEEN RECORDED I N THE SURVEY RECORDS HAS TO BE ACCEPTED AS CORRECT. HOWEVER, THE ASSESSEE S CONTENTION THAT THE SURVEY TEAM APPLIED - : 5 : - 5 THE RATE OF RS. 10,000/ - PER KG. IN RESPECT OF ORNAMENTS WITHOUT CONSIDERING THE IMPURITY PORTION IN THE ORNAMENTS HAS FORCE. CONSIDERING TH E PREVAILING MARKET PRACTICE AND THE CONTENTS OF IMPURITY, THE SILVER ORNAMENTS MAY BE TAKEN AT 70 % VALUE ( 30% IS CONSIDERED AS IMPURITY). IN THIS WAY THE TOTAL VALUE OF SILVER ORNAMENTS COMES AT RS. 70 LAKHS ( 1000 KGS. @ RS. 7000/ - ). FURTHER IT IS ALS O OBSERVED THAT IN NORMAL MONEYLENDING BUSINESS, THE ADVANCE GIVEN IS @50% OF THE VALUE OF THE SILVER ORNAMENTS. BY THIS CALCULATION RS. 35 LACS (50% OF RS. 70 LACS) IS COMPUTED AS THE INVESTMENT MADE BY THE ASSESSEE IN GIRVI BUSINESS. THE ASSESSEE HAS CLA IMED THAT CAPITAL OF RS. 9.17 LACS HAS BEEN INVESTED IN HIS MONEY LENDING BUSINESS WHICH WAS ALREADY SHOWN IN THE RETURNS FILED BY THE ASSESSEE. PERUSAL OF CAPITAL A/C AS ON 31.3.04 SHOWS THAT THE ASSESSEE S CAPITAL OF RS. 9.17 LACS IS IN THE FORM OF FDRS (RS.80,000/ - AND RS. 3,32,500/ - ), CASH - IN - HAND ( RS. 1,90,350/ - ) AND SUNDRY DEBTORS ( RS. - : 6 : - 6 3,14,790/ - ) THUS, AT THE MOST THE BENEFIT OF AMOUNT TO HAVE BEEN INVESTED IN THE MONEYLENDING BUSINESS OF THE ASSESSEE CAN BE GIVEN TO THE EXTENT OF RS. 5,05,140/ - ( RS. 1,90,350/ - + RS. 3,14,790/ - ) ONLY WHICH IS TREATED AS CAPITAL EMPLOYED BY THE ASSESSEE IN MONEY LENDING BUSINESS SURRENDERED BY THE ASSESSEE IN HIS RETURN. THUS, GIVING THE BENEFIT OF RS. 23,05,140/ - (RS. 5,05,140/ - + RS. 18 LACS), THE INVESTMENT OF RS . 11,94,860/ - ( RS. 35 LACS RS. 23,05,140/ - ) STILL REMAINS UNEXPLAINED WHICH SHOULD BE ADDED IN ASSESSEE S INCOME. THEREFORE, OUT OF TOTAL ADDITIONS OF RS. 32 LACS, THE ADDITIONS OF RS. 11,94,860/ - IS HEREBY CONFIRMED AND THE ASSESSEE GETS A RELIEF OF RS . 23,05,140/ - . THE ASSESSEE S CONTENTION THAT THE STOCK OF SILVER ORNAMENTS ALSO BELONG TO THE BUSINESS RUN BY HIS WIFE IS NOT SUBSTANTIATED AS THE ASSESSEE S WIFE WAS NO MORE ON THE DATE OF SURVEY AND FURTHER THE BENEFIT OF ANY CAPITAL BELONGING TO HER CA NNOT BE GIVEN TO THE - : 7 : - 7 ASSESSEE AS INCOME TAX RETURNS FILED BY THE ASSESSEE DO NOT SHOW SUCH TRANSFER OF CAPITAL. 6. AGAINST THIS ORDER OF CIT(A) , BOTH THE ASSESSEE AND REVENUE ARE IN APPEAL BEFORE US. THE REVENUE IS AGGRIEVED FOR DELETING THE ADDITION MA DE ON ACCOUNT OF UNEXPLAINED INVESTMENT IN MORTGAGE OF SILVER AMOUNTING TO RS. 23,05,140/ - WHERE AS THE ASSESSEE IS IN APPEAL FOR RETAINING THE ADDITION TO THE EXTENT OF RS. 11,94,860/ - . 7. WE HAVE CONSIDERED THE RIVAL CONTENTIONS, CAREFULLY GONE THROUGH THE ORDERS OF THE AUTHORITIES BELOW AND THE REMAND REPORTS CALLED BY THE LD. CIT(A) IN REGARD TO THE NATURE OF THE ASSESSEE S BUSINESS AND ITS MODUS OPERANDI. THE AO HAS MADE ADDITION ON THE BASIS OF SILVER ORNAMENTS FOUND TO BE PL EDGED WITH THE ASSESSEE WITHO UT CONSIDERING AND GIVING CREDIT FOR IMPURITIES IN SUCH ORNAMENTS. THE LD. CIT(A) AFTER CONSIDERING THE ELEMENT FOR IMPURITIES IN SILVER ORNAMENTS AND ALSO GIVING CREDIT ON ACCOUNT OF CAPITAL ALREADY SHOWN TO BE INVESTED IN THE PAWNING BUSINESS , RESTRICTE D THE ADDITION MADE BY THE ASSESSING OFFICER ON ACCOUNT OF INVESTMENT IN - : 8 : - 8 MORTGAGE OF SILVER AMOUNTING TO RS. 32 LAKHS TO THE TUNE OF RS. 11,94,860/ - . THE CIT(A) HAS GIVEN CREDIT FOR THE AMOUNT OF RS. 18 LAKHS SURRENDERED BY THE ASSESSEE AND ALSO ON ACCOUNT OF CAPITAL IN THE PAWNING BUSINESS IN THE FORM OF CASH IN HAND AND DEBTORS BEING CARRIED FORWARD FROM EARLIER YEARS. NOTHING COULD BE POINTED OUT BY THE LD. SENIOR D.R. TO CONTROVERT THIS FINDING OF THE CIT(A). HOWEVER, WE FOUND THAT IN THE APPELLATE PRO CEEDINGS, THE CIT(A) HAS CALLED THE REMAND REPORT AND THE AO IN HIS REMAND REPORT DATED 14.10.2008 OBSERVED AS UNDER WITH REGARD TO THE GIRVI BUSINESS BEING CARRIED OUT BY THE ASSESSEE AND HIS SON. DURING THE COURSE OF SURVEY, THE STATEMENT OF THE SON OF THE ASSESSEE SHRI RAMKISHAN WAS RECORDED. SHRI RAMKISHAN IN HIS STATEMENT RECORDED ON 15.03.05 ACCEPTED IN RESPONSE TO QUESTION NO.4, THAT THE MAIN SOURCE OF INCOME OF HIS FATHER AND HIMSELF WAS FROM PAWNING AND MONEYLENDING. HE ALSO ACCEPTED THAT ONLY ONE GIRI BOOK WAS KEPT. - : 9 : - 9 8. IN THE SUBSEQUENT REMAND REPORT DATED 27.2.09, THE OBSERVATION OF THE AO WAS AS UNDER : - ..AT THE TIME OF SURVEY STATEMENT OF THE ASSESSEE SHRI RAMKISHAN WAS RECORDED BECAUSE THE ASSESSEE HIMSELF WAS UNABLE TO GIVE STATEMENT BECAUSE OF HIS OLD AGE. SHRI RAMK ISHAN IN HIS STATEMENT RECORDED ON 15.3.2005 THAT IS MUCH AFTER THE DATE OF SURVEY HAS ACCEPTED IN RESPONSE TO QUESTION NO. 4 THAT THE MAIN SOURCE OF INCOME OF HIS FATHER AND HIMSELF WAS FROM MORTGAGE AND MONEY LENDING. HE ALSO A CCEPTED THAT A COMMON LEDGER HAS BEEN MAINTAINED BY HIM & HIS FATHER SHRI BAPULAL VANI. THIS FACT HAS NO WHERE BEEN CONTESTED BY SHRI RAMKISHAN VANI & HIS FATHER OR HIS COUNSEL AT ANY STAGE RATHER SHRI RAMKISHAN VANI FURTHER RE - ADMITTED THE SAID FACTS EVE N AFTER 12 DAYS OF SURVEY IN HIS STATEMENT RECORDED ON 15.3.2005. 9. IT IS CLEAR FROM THE ABOVE REMAND REPORT OF THE AO THAT IN THE STATEMENT RECORDED DURING SURVEY ITSELF, SHRI RAM KISHAN HAS ACCEPTED IN RESPONSE TO QUESTION NO. 4 THAT A - : 10 : - 10 COMMON LEDGER HAS B EEN MAINTAINED BY HIM AND HIS FATHER SHRI BAPU L AL V ANI IN RESPECT OF PAWNING AND MONEYLENDING BUSINESS. HE ALSO ACCEPTED THAT ONLY ONE GIRVI BOOK WAS KEPT. HOWEVER, WHILE MAKING ADDITION WITH REGARD TO THE SILVER ORNAMENTS FOUND, NO CREDIT WAS GIVEN FOR TH E CAPITAL INVESTED BY SHRI RAM KISHAN IN THE SAID PAWNING . AS MR. RAM KISHAN WAS ALSO DOING THE SAME BUSINESS AS CARRIED ON BY HIS FATHER AND THE ENTIRE SILVER ORNAMENTS WERE KEPT AT ONE PLACE , WHILE CONFIRMING ADDITION FOR INVESTMENT IN PAWNING BUSINESS DUE CREDIT WAS GIVEN BY CIT(A) ONLY IN RESPECT OF CAPITAL INVESTED IN SUCH PAWNING BUSINESS BY THE FATHER , HOWEVER, NO CREDIT FOR THE CAPITAL EMPLOYED BY RAM KISHAN SON OF THE ASSESSEE WAS GIVEN . AS PER THE BALANCE SHEET OF SHRI RAM KISHAN PLACED AT PAGE 4 7 OF THE PAPER BOOK, WHICH WAS DULY PLACED BEFORE THE AO, WE FOUND THAT THERE IS A DEBTOR OF RS. 5,05,500/ - AS ON 31 ST MARCH, 2004, WHICH INDICATE THE ADVANCING OF MONEY BY SHRI RAM KISHAN VANI. THIS AMOUNT OF DEBTOR WHICH SHRI RAM KISHAN VANI HAD INVESTE D IN ITS PAWNING BUSINESS IS REQUIRED TO BE GIVEN CREDIT WHILE WORKING OUT THE TOTAL AMOUNT INVESTED IN PAWNING BUSINESS, WHICH WAS COMPUTED BY THE - : 11 : - 11 ASSESSING OFFICER ON THE BASIS OF TOTAL SILVER ORNAMENTS FOUND DURING COURSE OF SURVEY. WE, THEREFORE, DIREC T THE AO TO GIVE CREDIT FOR THE DEBTORS FOR RS. 5,05,500/ - SHOWN BY SHRI RAM KISHAN VANI IN HIS BALANCE SHEET AS ON 31 ST MARCH, 2004, RETURN FOR WHICH HAVE ALREADY BEEN IN THE RECORD OF THE DEPARTMENT, WHEREIN SHRI RAM KISHAN VANI HAS SHOWN INTEREST INCOM E OF RS. 1,20,269/ - ON ACCOUNT OF SUCH PAWNING BUSINESS. WE DIRECT ACCORDINGLY. THUS, THE ADDITION ON ACCOUNT OF INVESTMENT IN MORTGAGE OF SILVER IS RESTRICTED TO RS. 6,89,360/ - ( RS. 11,94,860/ - - 5,05,500). 10. THE AO HAS ALSO MADE ADDITION ON ACCOUNT OF CAS H OF RS. 6,06,850/ - FOUND DURING SURVEY , WHICH WAS REDUCED BY THE LD. CIT(A) BY AN AMOUNT OF RS. 6850/ - . THUS, THE ADDITION RETAINED ON ACCOUNT OF CASH BY THE LD. CIT(A) WORKS OUT TO BE RS. 6 LAKHS. CONTENTION OF THE LD. AUTHORIZED REPRESENTATIVE BEFORE US WAS THAT SINCE FATHER AND SON WAS DOING PAWNING BUSINESS TOGETHER , DUE CREDIT SHOULD ALSO BE GIVEN IN RESPECT OF CASH IN HAND OF SHRI RAM KISHAN VANI. WE FIND THAT AS ON 31 ST MARCH, 2004, THERE WAS CASH OF RS. 1,98,015/ - AS PER THE BALANCE SHEET FILED BEF ORE THE AO, WHICH HE HAS NOT DISPUTED. - : 12 : - 12 THIS BALANCE SHEET IS ALSO FORMING PART OF RETURN OF INCOME FILED WITH THE DEPARTMENT. ACCORDINGLY, WE DIRECT THE AO TO GIVE CREDIT OF RS. 1,98,015/ - IN RESPECT OF CASH IN HAND POSSESSED BY SHRI RAM KISHAN VANI , WHO WAS DOING THIS PAWING BUSINESS ALONGWITH HIS FATHER IN TERMS OF THE REMAND REPORT SENT BY THE ASSESSING OFFICER AS DISCUSSED HEREINABOVE. THUS, THE ADDITION ON ACCOUNT OF CASH - IN - HAND IS REDUCED TO RS. 4,01,985/ - ( 6,00,000 1,98,015). 11. THE REVENUE IS ALS O AGGRIEVED FOR DELETION OF ADDITION OF RS. 1,25,000/ - IN TERMS OF ENTRY ON THE LOOSE PAPERS . 12. WE F IND THAT THE LD. CIT(A) HAS CONSIDERED THE LOOSE SLIPS ATTACHED WITH THE ORNAMENTS, WHICH WERE RELEASED BY THE ASSESSEE AFTER GETTING BACK THE MONEY LENT TO T HEM. IT WAS FOUND THAT SUCH LOOSE PAPER SLIPS WERE RELATED TO THE ORNAMENTS MORTGAGED IN GIRVI BUSINESS AND RE LEASED ON GETTING THE AMOUNT BACK WITH INTEREST. FOLLOWING WAS THE PRECISE FINDING OF THE LD. CIT(A) : - 8.2 ON CONSIDERING THE FACTS OF THE CASE, IT IS OBSERVED THAT THE APPELLANT S CONTENTION THAT SUCH SLIPS ARE RELATED TO THE ORNAMENTS MORTGAGED IN GIRVI - : 13 : - 13 BUSINESS AND RELEASED ON GETTING THE AMOUNTS BACK WITH INTEREST SEEMS TO BE REASONABLE. EVEN IF THESE TRANSACTIONS ARE TREATED AS OUT OF BO OKS TRANSACTIONS, THE AMOUNTS SO RECEIVED BACK ON RELEASE OF SUCH ORNAMENTS HAS COME INTO CIRCULATION OF THE APPELLANT S BUSINESS WHICH IN TURN WAS LYING IN THE SHAPE OF EITHER CASH OR PAWNED ARTICLES. THUS, IT IS HELD THAT AMOUNTS IN THESE SLIPS HAVE ALRE ADY BEEN TAKEN INTO ACCOUNT. THEREFORE, THE APPELLANT S CONTENTION IN THIS RESPECT IS ACCEPTABLE AND ADDITION OF RS. 1,25,000/ - IS DIRECTED TOBE DELETED. 13. THE FINDING RECORDED BY THE LD. CIT(A) HAS NOT BEEN CONTROVERTED BY THE DEPARTMENT. AS PER OUR C ONSIDERED VIEW IN THE PAWNING BUSINESS SUCH PRACTICE IS PREVALENT AND THESE SLIPS ARE RELATED TO THE ORNAMENTS MORTGAGED AS GIRVI. SUCH SLIPS HAVING NO VALUE AFTER RELEASING OF THE ORNAMENTS MORTGAGED. ACCORDINGLY, WE DO NOT FIND ANY REASON TO INTERFERE IN THE FINDINGS RECORDED BY THE LD. CIT(A) . - : 14 : - 14 14. THE ASSESSEE IS ALSO AGGRIEVED FOR THE ADDITION OF RS. 34,968/ - RETAINED BY THE LD. CIT(A) ON ACCOUNT OF INVESTMENT IN GOLD GIRVI BUSINESS. 15. ADDITION OF RS. 55,000/ - WAS RETAINED BY THE LD. CIT(A) TO THE EXTENT OF R S. 34,968/ - ON ACCOUNT OF INVESTMENT IN GOLD GIRVI BUSINESS , AFTER HAVING THE FOLLOWING OBSERVATIONS : - GROUND NO. 5(D) IS AGAINST THE ADDITION OF RS. 55,000/ - MADE IN RESPECT OF UNACCOUNTED INVESTMENT IN MORTGAGE OF GOLD ORNAMENTS. IT WAS CONTENDED BY TH E APPELLANT THAT THE INVESTMENT HAS ALREADY BEEN REFLECTED IN THE BOOKS B - 1 & B - 2. IN THE REMAND REPORT THE AO HAS SUBMITTED THAT SHRI RAMKISHEN VANI, APPELLANT S SON HAS ADMITTED THAT THE INVESTMENT OF RS. 55,000/ - MADE AGAINST THE GOLD ORNAMENTS WAS NOT ENTERED IN THE REGULAR BOOKS OF ACCOUNT. IN THE REJOINDER TO THE REMAND REPORT, THE APPELLANT HAS SHOWN THAT AS PER BOOKS OF ACCOUNT VIZ. B - 1 & B - 2, TRANSACTIONS OF 84.5 GMS. OF GOLD ORNAMENTS HAVE BEEN ENTERED IN THEM OUT OF TOTAL 232 GMS. OF GOLD DECLAR ED BY THE APPELLANT VALUING RS. - : 15 : - 15 55,000/ - ( TAKING THE AVERAGE RATE @ RS. 2370/ - PER 10 GMS.). THE SAME HAS BEEN VERIFIED AND FOUND TRUE. THUS, OUT OF TOTAL DECLARATION OF RS. 55,000/ - , THE BENEFIT OF INVESTMENT THROUGH RECORDED 84.5 GMS. OF GOLD AMOUNTING T O RS. 20,032/ - IS GRANTED TO THE APPELLANT. THUS, ADDITION ON THIS COUNT IS RESTRICTED TO RS. 34,968/ - (RS. 55,000/ - ( - ) RS. 20,032/ - ) ONLY. THE APPELLANT GETS A RELIEF OF RS. 20,032/ - . 16. WE HAVE CAREFULLY CONSIDERED THE RIVAL CONTENTIONS AND FOUND THAT TH E ADDITION OF RS. 55,000/ - WAS MADE BY THE ASSESSING OFFICER ON ACCOUNT OF MORTGAGE OF GOLD ORNAMENTS. IT WAS OBSERVED THAT THERE WAS RECORDED INVESTMENT OF 84.5 GMS. OF GOLD AMOUNTING TO RS. 20,023/ - . ACCORDINGLY, THE CIT(A) REDUCED ADDITION OF RS. 55,000 / - TO RS. 20,023/ - WHICH WORKS OUT TO BE RS. 34,968/ - . NOTHING WAS BROUGHT TO OUR NOTICE BY THE LD. AUTHORIZED REPRESENTATIVE TO PERSUADE US TO DEVIATE FROM THE FINDINGS RECORDED BY THE LD. CIT(A) FOR RETAINING ADDITION OF RS. 34,968/ - . ACCORDINGLY, WE CON FIRM THE ACT ION OF THE CIT(A) ON THIS COUNT AND DISMISS THE GROUND RAISED BY THE ASSESSEE. - : 16 : - 16 17. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISMISSED WHEREAS APPEAL OF THE ASSESSEE IS ALLOWED IN PART IN TERMS INDICATED HEREINABOVE. THIS ORDER HAS BEEN PRONO UNCED IN THE OPEN COURT ON 30 TH JUNE , 2011. SD/ - SD/ - (JOGINDER SINGH) ( R.C.SHARMA) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED : 30 TH JUNE , 2011 . CPU* 306