DCIT - I, Kanpur V. Sri Ram Dularey Verma, Kanpur

ITA 531/LKW/2011

• Counselvise Citation: [2014] 120 COUNSELVISE.COM (IT) 6547 (ITAT-LUCKNOW)
• Duration Of Justice: 2 year(s) 9 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-06-2014
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 18-06-2014
• Assessment Year: misc
• Appeal Filed On: 08-09-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: S S GUPTA; A JAISWAL
• Keywords: Gift; Search and seizure; Valuation report

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH A , LUCKNOW BEFORE SHRI S UNIL KUMAR YADAV , JUDICIAL MEMBER AND SHRI. A. K. GARODIA , ACCOUNTANT MEMBER ITA NO. 531/LKW/2011 BLOCK PERIOD ENDING ON 18.9.1998 DY. CIT - 1 KANPUR V. SHRI. RAM DULAREY V ERMA SHOP NO.8, KAZI KHERA LAL BANGLA, KANPUR (APP ELL ANT) (RESPONDENT) APP ELL ANT BY: SHRI. MANOJ KUMAR GUPTA, CIT (DR) RESPONDENT BY: SHRI. S.S. GUPTA, FCA & SHRI. A. JAISWAL, ADVOCATE DATE OF HEARING: 18 0 6 2014 DATE OF PRONOUNCEMENT: 25 0 6 20 14 O R D E R PER SUNIL KUMAR YADAV: THIS APPEAL IS PREFERRED BY THE REVENUE AGAINST THE ORDER OF THE LD. CIT(A), INTER ALIA ON FOLLOWING GROUNDS: - 1 . THAT THE LD. COMMISSIONER OF IN COME TAX (APPEALS) - LL, KANPUR H AS ERRED IN LAW AND ON FACTS IN ALLOWING R ELIEF OF RS.4 ,35,677/ - OUT OF ADDITION MADE B Y THE ASSESSING OFFICER ON ACCOUNT OF UNDISCLOSED INCOME IN FORM OF GOLD JEWELLERY, WITHOUT APPRECIATING THE FACTS BROUGHT ON RECORD BY THE ASSESSING OFFICER DURING THE COURSE OF ASSESSMENT PROCEEDINGS . 2 . THAT THE LD. COMMISSIONER OF INCOME TAX (APPEALS) - LL, KANPUR HAS ERRED IN KM AND ON FACTS IN ALLOWING RELIEF OF RS.49,507/ - OUT OF ADDITION MADE BY THE AS OFFICER ON ACCOUNT OF UNDISCLOSED INCOME IN FORM OF SILVER JEWELLERY, APPRECIATING THE FACTS BROUGHT ON RECOR D BY PRINT TO PDF WITHOUT THIS MESSAGE BY PURCHASING NOVAPDF ( HTTP://WWW.NOVAPDF.COM/ ) : - 2 - : THE ASSESSING OFFICER DURING THE COURSE OF ASSESSMENT PROCEEDINGS. 3 . THAT THE LD. COMMISS IONER OF INCOME TAX (APPEALS) - II , KANPUR HAS ERRED IN LAW AND ON FACTS IN ALLOWING RELIEF OF RS.34,508/ - OUT OF ADDITION MADE BY THE ASSESSING OFFICER ON ACCOUNT OF CUSTOMERS FOUNDS UNTRACEABLE BY GIVING BENEFIT OF DOUBT TO THE ASSESSEE, WITHOUT APPRECIATING THE FACTS BROUGHT ON RECORD BY THE ASSESSING OFFICER DURING THE COURSE OF ASSESSMENT PROCEEDINGS. 4 . THAT THE ORDER OF THE LD. COMMISSIONER OF INCOME TAX (APPEALS) - LL. KANPUR DATED 29.06.2011 NEEDS TO BE QUASHED AND THE ORDER PASSED BY THE ASSESSING OFFICER DATED 29.09.2000 BE RESTORED. 2 . APROPOS GROUND NO.1, IT IS NOTICED THAT THE ASSESSEE WAS CARRYING ON THE BUSINESS OF TRADING AND REPAIRING IN GOLD ORNAMENTS UNDE R THE PROPRIETORSHIP OF M/S RAM DULAREY JEWELLERS AND BANKERS . A SEARCH AND SEIZURE OPERATION WAS CONDUCTED UPON THE PREMISES OF THE ASSESSEE ON 10.9.1998. DURING THE COURSE OF SEARCH, CERTAIN DOCUMENTS BESIDES JEWELLERY WERE FOUND AND SEIZED. ACCORDING LY ASSESSMENT WAS FRAMED UNDER SECTION 158BC OF THE INCOME - TAX ACT, 1961 (HEREINAFTER CALLED IN SHORT THE ACT'). THOUGH THE ASSESSEE HAS TRIED TO EXPLAIN THE SOURCE OF GOLD JEWELLERIES, BUT THE ASSESSING OFFICER HAS ASSESSED TOTAL INCOME OF RS.19,88,890/ - AS AGAINST THE RETURNED INCOME OF RS.12,13,770/ - , RESULTING INTO AN ADDITION OF RS.6,04,280/ - , AGAINST WHICH AN APPEAL WAS FILED BEFORE THE LD. CIT(A) WITH THE SUBMISSION THAT THE ASSESSING OFFICER HAS ALSO MADE CERTAIN ADDITIONS OF THE JEWELLERIES WHICH WERE ALREADY DECLARED BY THE ASSESSEE. 3 . THE LD. CIT(A), RE - EXAMINED THE ISSUE IN THE LIGHT OF DETAILS OF JEWELLERY FOUND AND DECLARED BY THE ASSESSEE AND BEING PARTLY CONVINCED WITH THE EXPLANATIONS OF THE ASSESSEE, THE LD. CIT(A) CALCULATED THE PRINT TO PDF WITHOUT THIS MESSAGE BY PURCHASING NOVAPDF ( HTTP://WWW.NOVAPDF.COM/ ) : - 3 - : UNDISCLO SED INCOME FROM GOLD JEWELLERY AT RS.11,01,323/ - A S AGAINST RS.15,37,000/ - ASSESSED BY THE ASSESSING OFFICER. THE RELEVANT OBSERVATIONS OF THE LD. CIT(A) ARE EXTRACTED HEREUNDER FOR THE SAKE OF REFERENCE: - I HAVE PURSUED THE PANCHNAMA DT. 10 - 09 - 1998, RE TURN OF UNDISCLOSED INCOME FILED BY THE ASSESSEE, HIS SUBMISSIONS AS WELL AS ASSESSMENT ORDER, COPY OF WHICH HAS BEEN FILED BY THE ASSESSEE IN FORM OF PAPER BOOK AND MY OBSERVATION AS WELL AS DECISIONS ON THE POINTS IN DISPUTE ARE AS UNDER: GOLD JEWELLER C AUSE OF DIFFERENCE BETWEEN THE SURRENDERED AND ASSESSED VALUES IN GOLD ITEMS MAY BE TABULATED AS UNDER: WEIGHTWISE PARTICULARS WIGHT (GMS.) PER DIFFERENCE ASSESSEE ASST. ORDER STOCK FOUND DURING THE COURSE 9138.500 9138.500 STOCK RECORDED IN BOOKS OF ACCOUNT 5296.943 5301.943 CLAIM EXCESS ALLOWED BY A O BY 5 GMS. BALANCE 3841.557 3886.557 LESS: JEWELLERY FOUND ON ACCOUNT OF PAWNING AND REPAIRS (ANNEXURE J - 1) 657.280 - CLAIM REJECTED BY A. O LESS: OTHER CLAIMS (AS PE R CHART) 425.100 CLAIM REJECTED BY A.O WEIGHT OF GOLD ITEMS CLAIMED/ ASSESSED 2759.177 3886.557 RATEWISE RATES AT WHICH UNDISCLOSED INCOME OFFERED BY THE ASSESSEE RS. 3500.00 PER 10 GMS. RATES AT WHICH UNDISCLOSED INCOME ASSESSED BY A O RS . 4092.21 PER 10 GMS. PRINT TO PDF WITHOUT THIS MESSAGE BY PURCHASING NOVAPDF ( HTTP://WWW.NOVAPDF.COM/ ) : - 4 - : AS REGARDS EXCESS ALLOWANCE OF CLAIM OF JEWELLERY RECORDED IN BOOKS OF ACCOUNT AT THE TIME OF SEARCH, I FOUND THAT THE OBSERVATION AND CONSEQUENT EXCESS ALLOWANCE OF CLAIM OF GOLD ITEMS FOUND RECODED IN THE BOOKS OF GOLD ITE MS WAS BA SED ON APPRECIATION OF SEIZED RECORDS A ND ACCORDINGLY, THE CLAIM OF STOCK OF GOLD ITEMS RECORDED IN BOOKS OF ACCOUNT IS ACCEPTED AT 5301.943 GMS. AS AGAINST THE CLAIM OF 5296.943 GMS. OF THE ASSESSEE . AS REGARDS JEWELLERY FOUND ON ACCOUNT OF PAWNING AND RE PAIRS INVENTORIZED VIDE ANNEXURE J - 1 TO THE PAN C HNAMA DATED 10 - 09 - 1998 WEIGHING TO 657.280, I HAVE PURSUED THE COPY OF RELEVANT PORTION OF PANC HNAMA FILED VIDE PAGE NO. 166 - 170 OF PAPER BOOK. A PERUSAL OF THE SAME SUGGESTS THAT LIST HAVE BEEN PREPARED FROM REPAIRING BOOK AS MENTIONED IN COLUMN NO. 2 OF RELEVANT PAGES AND GOLD ITEMS TO THE TUNE OF 657.280 GMS. AND SILVER IT EMS TO THE TUNE OF 122.000 GMS. HAVE BEEN RECEIVED FROM VARIOUS PARTIES. PROPER INVESTIGATION HAS BEEN MADE BY ID. A O REGARDING THIS LIS T AND HIS OBSERVATION IS FOUND MENTIONED AT 7 TH P A GE OF ASSESSMENT ORDER BEING PAGE NO. 71 OF THE PAPER BOOK. REGARDING ADDITION ON ACCOUNT OF HIS OBSERVATION ARE DISCUSSED IN THIS APPEAL ORDER ELSEWHERE. HOWEVER, THE FACT REMAINS THE JEWELLERY FOUND SE IZED INVENTORIZED VIDE ANNEXURE J IS INCLUDING THE ITEMS, LIST OF WHICH HAS BEEN PREPA RED VIDE ANNEXURE J - 1 TO THE PANEHNAMA DT. 10 - 09 - 1998. AND ACCORDINGLY, THE CLAIM OF GOLD ITEMS OF 657.280 GMS. CLAIMED TO BE BELONGING TO OTHERS IS ACCEPTED. AS REGARDS OTHER CLAIMS WEIGHING TO 425.100 GMS. OF GOLD ITEMS, IT WAS EXPLAINED BY THE ID. COUNSEL DURING THE COURSE OF ASSESSMENT PROCEEDINGS THAT THIS JEWELLERY WAS BELONGING TO VARIOUS FA MILY MEMBERS OF THE ASSESSEE. IT WAS FURTHER EXPLAINED BY HIM THAT ASSESSEE F AMILY CONSISTS OF ASSESSEE, HIS SPOUS E, FOUR SON AND 2 DAUGHTER IN LAW AS WELL AS THEIR CHILDREN. IT WAS ALSO ARGUED BY HIM T HAT EVEN THE CBD T CIRCULAR PERMITS AND ALLOWS TO HOLD 500 GMS. OF GOLD JEWELLERY PER MARRIED LADY, 250 GMS. PRINT TO PDF WITHOUT THIS MESSAGE BY PURCHASING NOVAPDF ( HTTP://WWW.NOVAPDF.COM/ ) : - 5 - : PER UNMARRIED FEMALE A ND 100 GMS._PER M ALE MEMBERS VIDE INSTRUCTION NO. 1916 DT. 11.05.1994. HE FURTHER RELIED ON THE DECISION IN THE CASE OF HARAKCHAND N. JAIN V. ASSN. CIT [1998] 61 TTJ (MUM.) 223, IN WHICH HON'BLE MEMBERS HAS OBSERVED AS UNDER : (II) A PERUSAL OF THE ABOVE C IRCULAR SHOWS THAT IN CASE OF PERSON NOT ASSESSED TO WEALTH - TAX GOLD JEWELLERY AND ORNAMENTS TO THE EXTENT OF 500 GMS. PER MARRIED LADY, 250 GMS. PER UNMARRIED LADY AND 100 GMS. PER MALE MEMBER OF THE FAMILY NEED NOT BE SEIZED. IT FURTHER PROVIDES THAT HAV ING REGARD TO THE STATUS OF THE FAMILY AND CUSTOM AND PRACTICE OF THE COMMUNITY TO WHICH THE FAMILY BELONGS, THE OFFICER MAY EXCLUDE A LARGE QUANTITY OF JEWELLERY AND ORNAMENTS AND SEIZURE. IN THE PRESENT CASE, THERE ARE FOUR MALE MEMBERS IN THE FAMILY, TH E ASSESSEE AND HIS THREE SONS. SIMILARLY, THERE ARE TWO MARRIED LADIES AND ONE UNMARRIED LADY. THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED JEWELLERY OF THE ASSESSEE AND HIS WIFE WAS LOW AND WAS RECEIVED BY VARIOUS OCCASIONS, LIKE MARRIAGE DELIVERY, BIRT H, ETC. AND THE JEWELLERY BELONGED TO THE CHILDREN WAS ALSO RECEIVED IN SIMILAR OCCASIONS. ON THE OTHER HAND, THE LEARNED DEPARTMENTAL REPRESENTATIVE ARGUED THAT THE ASSESSEE HAS NOT PROVIDED ANY EVIDENCE TO EXPLAIN THE SOURCE OF THE INVESTMENT IN THE JEWE LLERY. (III) ON CAREFUL CONSIDERATION OF THE RIVAL SUBMISSION WE FIND THAT THE ASSESSEE HAS NOT PLACED ON RECORD ANY EVIDENCE TO PROVE THAT THE JEWELLERY HAS BEEN RECEIVED AS GIFT BY HIM BY PRODUCING THE GT RETURN OR ANY OTHER EVIDENCE. HOWEVER, WE ARE CON SCIOUS OF THE FACT THAT IN INDIAN SOCIETY EVERYONE RECEIVES GIFTS AT THE TIME OF MARRIAGE AND OTHER OCCASIONS. THEREFORE, KEEPING IN VIEW THE NUMBER OF FAMILY MEMBERS WE ARE OF THE VIEW THAT FURTHER REBATE OF 500 GMS. OUT OF THE ENTIRE JEWELLERY MAY BE TRE ATED AS EXPLAINED. THE BALANCE 426 GMS. OF JEWELLERY MAY BE TREATED AS ADDITION UNDER SECTION 69A OF THE INCOME - TAX ACT.' PRINT TO PDF WITHOUT THIS MESSAGE BY PURCHASING NOVAPDF ( HTTP://WWW.NOVAPDF.COM/ ) : - 6 - : CONSIDERING THE TOTALITY OF FACTS AND RESPECTFULLY FOLLOWING THE ABOVE DECISION, AN ALLOWANCE OF ADDITIONAL 417.400 GMS. JEWELLERY IS ACCEPTED. HENCE THIS ADDITION IS DELETED. A.R FURTHER RELIED UPON THE CONFIRMATION OF SMT. SITA VERMA AND SMT. RITA VERMA BOTH ARE DAUGHTER - IN - LAWS, OF ASSESSEE. THE A.R HAS ALSO RELIED UPON INCOME - TAX RECORD OF THESE LADIES ALSO. I HAVE GONE THROUGH CONFI RMATION AND IT RECORD OF ABOVE LADIES AND FOUND AS A MATTER OF FACT THAT SMT. SITA VERMA HAS DISCLOSED HER ITR JEWELLERY WAS 134.700GM. SIMILARLY SMT. SFTA VERMA HAS ALSO DISCLOSED JEWELLERY 282.700GM. THE A.O HAS NOT DISPUTED THE FACTUAL POSITION OF DISAL LOWANCE OF JEWELLERY AS PER IT RECORD WHICH WERE SUBMITTED. BOTH THE LADIES ARE IT PAYER. COMING TO THE ISSUE OF RATES OF GOLD ITEMS CLAIMED BY THE APPELLANT AT RS.3500 PER 10 GMS. AND APPLIED BY A O AT RS. 4092.21 PER 10 GMS. (BEING ADDITION AT RS. 15700 00 ON TOTAL UNEXPLAINED GOLD JEWELLERY ASSESSED AT 3836.557 GMS.), I HAVE PURSUED THE VALUATION REPORT OF APPROVED JEWELER VIDE ANNEXURE J AT PAGE 165 OF PAPER BOOK AND OTHER RELEVANT PAPERS/DOCUMENTS. I FOUND THAT APPROVED JEWELER HAS HIMSELF ADMITTED RAT E OF 24 CT. GOLD AT RS. 4250 PER 10 GMS., BUT AT THE SAME TIME HE HAS APPLIED GOLD RATE OF RS. 4100 PER 10 GMS. FOR 22 CT. GOLD JEWELLERY. ASSESSEE HAS ARGUED THAT THE RATE OF JEWELLERY APPLIED BY APPROVED JEWELER MIGHT BE CORRECT FOR ANY CONSUMERS/BUYER B UT NOT FOR TRADER WHO USED TO PURCHASE THE JEWELLERY IN WHOLE SALE. THOUGH I AM CONVINCED WITH THE ARGUMENTS PUT FORTH BY ID. COUNSEL BUT THE CLAIM OF 20% OF REDUCTION ON RATE OF 24 CTS. GOLD IS NOT APPROPRIATE. PURITY LEVEL OF 22 CT. TO 24 CT COMES TO 91 .67%. ALLOWING COMPONENT OF GROSS PROFIT RATE AND ADDING MAKING CHARGES FROM THE ABOVE PURITY LEVEL OF 22 CTS. JEWELLERY, A DISCOUNT OF 10% OF RATE OF 24 CTS. GOLD, WHICH COMES TO RS. 3825 PER 10 GMS. (BEING RS. 4250 LESS 10% RS.425). THIS REBATE OF 10% IS FOUND APPROPRIATE FROM THE ANGLE OF ASSESSMENT ORDER PASSED IN THE CASE OF SHRI RAMESH KUMAR GARG U/S 158BC DT. 28.05.1999 IN WHICH REBATE OF 17.5% HAS BEEN ALLOWED IN CASE OF GOLD JEWELLERY, COPY OF WHICH PRINT TO PDF WITHOUT THIS MESSAGE BY PURCHASING NOVAPDF ( HTTP://WWW.NOVAPDF.COM/ ) : - 7 - : HAS BEEN PROVIDED BY ID. COUNSEL DURING THE COURS E OF HEARING. APPELLANT HAS ALSO RELIED UPON A CALCULATION CHART IN CONNECTION WITH PURITY AND IMPURITY WHICH IS RE PRODUCED AS UNDER -- GOLD AND SILVER RATES FOR THE LAST TEN ASSESSMENT YEARS ASSESSMENT YEAR/VALUATION DATE GOLD RATES (STANDARD 24 CARATS) PER 10 GMS.) RS. SILVER RATES (9.960 TOUCH) (PER 1 KG.) RS. ASSESSMENT YEAR/VALUATION DATE GOLD RATES (STANDARD 24 CARATS) (PER 10 GMS) RS. SILVER RATES (9.960 TOUCH) (PER 1 KG.) RS. 1989 - 90 31.3.1989 3.140 6.755 1994 - 95 31.3.1994 4.598 7.124 1990 - 91 3 1.3.1990 3.200 4.463 1995 - 96 31.3.1995 4.680 6.335 1991 - 92 31.3.1991 3.466 6.646 1996 - 97 31.3.1996 5.160 7.346 1992 - 93 31.3.1992 4.334 8.040 1997 - 98 31.3.1997 4.725 7.345 1993 - 94 31.3.1993 4.140 5.489 1998 - 98 31.3.1998 4.045 8.560 NOTES: . 1 . VALUE OF GOL D CONTAINED IN GOLD ORNAMENTS SHOULD BE REDUCED BY 14 TO 20 PER CENT OF RULING RATES OF STANDARD GOLD, AS PER THE PRACTICE PREVALENT IN TILE BULLION MARKET AND THE AMOUNT OF REDUCTION HAS TO BE WORKED OUT IN THE FOLLOWING MANNER: PLAIN GOLD OTHER GOLD BANGLES AND ORNAMENTS MADE OF SOLID GOLD DIFFERENCE IN VALUE BETWEEN 24 CARATS OF STANDARD GOLD AND 22 CARATS OF GOLD ORNAMENTS (GOLD ORNAMENTS 8.33% 8.33% ARE GENERALLY MADE OF 22 CARATS OF GOLD ) SOLDERING MADE NL CUPPER, SILVER, ETC., USED IN 2.5% TO 5% 8.33% MAKING ORNAMENTS SHORTAGE OF GOLD IN MELTING, MINT CCHARGES PAYABLE TO 1.25% 1.25% GOVERNNTENT, EXPENDITURE ON FREIGHT, INSURANCE, ETC. OF SENDING GOLD ORNAMENT S TO APPROVED MINT FOR CONVERSION PRINT TO PDF WITHOUT THIS MESSAGE BY PURCHASING NOVAPDF ( HTTP://WWW.NOVAPDF.COM/ ) : - 8 - : INTO STANDARD GOLD BARS MARGIN OF PROFIT OF THE DEALER WHEN ORNAMENTS ARE 2% 2% SOLD IN MARKET TOTAL REDUCTION 14.08% TO 16.58% 19.91% 2. SILVE R UTENSILS , ETC IS LIABLE FOR WEALTH - TAX, 3. CONVERSIO N TABLE: 10 GRAMS = 0.857 TOLA 1 TOLA = 11.664 GRAMS 1 KILOERAM = 85.734 TOLAS 10 TOLAS = 116.638GMS. ACCORDINGLY, THE DISCLOSED INCOME IN FORM OF GOLD JEWELLERY IS CALCULATED AS UNDER: PARTICULARS WIGHT (GMS.) STOCK FOUND DURING THE COURSE OF SEARCH 9138.500 LESS: STOCK RECORDED IN BOOKS OF ACCOUNT 5301.943 BALANCE 3836.557 LESS: JEWELLERY FOUND ON ACCOUNT OF PAWNING AND REPAIRS (ANNEXURE J - 1 ) 657.280 LESS: OTHER CLAIMS (AS PER CHART) 300. 000 UNDISCLOSED INCOME IN FORM OF GOLD ITEMS 2879.277 ACCORDINGLY, UNDISCLOSED INCOME IN FORM OF GOLD JEWELLERY IS CALCULATED AT RS.1101323.00 AS AGAINST ASSESSED OF RS. 1537000.00. 4 . ACCORDINGLY, A RELIEF OF RS.4,35,677/ - WAS GIVEN TO THE ASS ESSEE. 5 . AGGRIEVED, THE REVENUE HAS PREFERRED AN APPEAL BEFORE THE TRIBUNAL AND SIMPLY PLACED RELIANCE UPON THE ORDER OF THE ASSESSING OFFICER, WHEREAS THE LD. COUNSEL FOR THE ASSESSEE HAS EXPLAINED THE DETAILS OF JEWELLERIES AND ITS VALUATION FOUND AS PER S EIZURE MEMO. BESIDES, HE HAS ALSO PLACED RELIANCE UPON THE ORDER OF THE LD. CIT(A). 6 . HAVING GIVEN A THOUGHTFUL CONSIDERATION TO THE RIVAL SUBMISSIONS AND FROM A CAREFUL PERUSAL OF THE ORDER OF THE LD. CIT(A), WE FIND THAT THE LD. CIT(A) HAS EXAMINED THE DE TAILS OF JEWELLERY FOUND DURING THE COURSE OF PRINT TO PDF WITHOUT THIS MESSAGE BY PURCHASING NOVAPDF ( HTTP://WWW.NOVAPDF.COM/ ) : - 9 - : SEARCH AND EXPLAINED BY THE ASSESSEE AND TAKING INTO ACCOUNT ALL THE RELEVANT ASPECTS, THE LD. CIT(A) HAS CALCULATED THE UNDISCLOSED INCOME FROM GOLD JEWELLERY AT RS.11,01,323/ - AS AGAINST ASSESSED INCOME AT RS .15,37,000/ - . SINCE NO SPECIFIC DEFECT HAS BEEN POINTED OUT BY THE LD. D.R. IN THE ORDER OF THE LD. CIT(A), WE FIND NO JUSTIFICATION TO DISTURB THE ORDER OF THE LD. CIT(A). ACCORDINGLY, THE ORDER OF THE LD. CIT(A) ON THIS ISSUE IS CONFIRMED. 7 . APROPOS GROU ND NO.2, IT IS NOTICED THAT THE ADDITION WAS MADE ON ACCOUNT OF DIFFERENCE BETWEEN THE SURRENDERED AND ASSESSED VALUE IN SILVER JEWELLERY. IT WAS EXPLAINED TO THE LD. CIT(A) DURING THE COURSE OF APPELLATE PROCEEDINGS AND THE LD. CIT(A) BEING CONVINCED WIT H THE EXPLANATIONS OF THE ASSESSEE HAS RE - CALCULATED THE UNDISCLOSED INCOME FROM SILVER JEWELLERY AT RS.1,44,193/ - AS AGAINST ASSESSED INCOME OF RS.1,93,700/ - . THE RELEVANT OBSERVATIONS OF THE LD. CIT(A) IS EXTRACTED HEREUNDER: - SILVER JEWELLERY CAUSE O F DIFFERENCE BETWEEN THE SURRENDERED AND ASSESSED VALUES IN GOLD ITEMS MAY BE - TABULATED AS UNDER: WEIGHTWISE PARTICULARS WIGHT (KGS.) PER DIFFERENCE ASSESSEE ASST. ORDER STOCK FOUND DURING THE COURSE OF SEARCH 90.000 90.000 LESS: STOCK REC ORDED IN BOOKS OF ACCOUNT 64.074 64.074 BALANCE 26.000 26.000 LESS: JEWELLERY FOUND ON ACCOUNT OF PAWNING AND REPAIRS (ANNEXURE J - L) 0.122 - CLAIM REJECTED BY A . O WEIGHT OF GOLD ITEMS CLAIMED/ASSESSED 25.878 26.000 PRINT TO PDF WITHOUT THIS MESSAGE BY PURCHASING NOVAPDF ( HTTP://WWW.NOVAPDF.COM/ ) : - 10 - : RATEWISE RATES AT WHICH UNDISCLOSED INCOME OFFERED BY THE ASSESSEE RS. 5215.00 PER 10 GMS. RATES AT WHICH UNDISCLOSED INCOME ASSESSED BY A O RS. 7452.00 PER 10 GMS. AS REGARDS SILVER JEWELLERY FOUND ON ACCOUNT OF PAWNING AND REPAIRS INVENTORIZED VIDE ANNEXUNE J - 1 TO THE PANCHNAMA DATED 10 - 09 - 1998 WEIGHING TO 0.122 KGS., I HAVE KPERUSED THE COPY OF RELEVANT PORTION OF PANCHNAMA FILED VIDE PAGE NO. 166 - 170 OF PAPER BOOK. A PERUSAL OF THE SAME SUGGESTS THAT LIST HAVE BEEN PREPARED FROM REPAIRING BOOK AS MENTIONED IN COLU MN NO. 2 OF RELEVANT PAGES AND GOLD ITEMS TO THE TUNE OF 657.280 GMS. AND SILVER ITEMS TO THE TUNE OF 122.000 GMS. HAVE BEEN RECEIVED FROM VARIOUS PARTIES. PROPER INVESTIGATION HAS BEEN MADE BY ID. A O REGARDING THIS LIST AND HIS OBSERVATION IS FOUND MENTI ONED AT 7TH PAGE OF ASSESSMENT ORDER BEING PAGE NO. 71 OF THE PAPER BOOK. REGARDING ADDITION ON ACCOUNT OF HIS OBSERVATION ARE DISCUSSED IN THIS APPEAL ORDER ELSEWHERE. HOWEVER, THE FACT REMAINS THE SILVER JEWELLERY FOUND SEIZED INVENTORIZED VIDE ANNEXURE J IS INCLUDING THE ITEMS, LIST OF WHICH HAS BEEN PREPARED VIDE ANNEXURE J - 1 TO THE PANCHNAMA DT. 10 - 09 - 1998. AND ACCORDINGLY, THE CLAIM OF SILVER ITEMS OF 0.122 GMS. CLAIMED TO BE BELONGING TO OTHERS IS ACCEPTED. COMING TO THE ISSUE OF RATES OF SILVER ITE MS CLAIMED BY THE APPELLANT AT RS. 5215 PER KG. AND APPLIED BY A O AT RS. 7450.00 PER KG., I HAVE PURSUED THE VALUATION REPORT OF APPROVED JEWELER VIDE ANNEXURE J AT PAGE 165 OF PAPER BOOK AND OTHER RELEVANT PAPERS/DOCUMENTS. I FOUND THAT APPROVED JEWELER HAS HIMSELF ADMITTED RATE OF PURE SILVER AT RS. 7450 PER KG,, BUT AT THE SAME TIME HE HAS APPLIED RATE OF RS. PRINT TO PDF WITHOUT THIS MESSAGE BY PURCHASING NOVAPDF ( HTTP://WWW.NOVAPDF.COM/ ) : - 11 - : 7450 PER KGS. FOR SILVER ORNAMENTS. ASSESSEE HAS ARGUED THAT THE RATE OF SILVER APPLIED BY APPROVED JEWELER MIGHT BE CORRECT FOR ANY CONSUMERS/BUY ER BUT NOT FOR TRADER WHO USED TO,, PURCHASE THE JEWELLERY IN WHOLE SALE. I AM CONVINCED WITH THE ARGUMENTS PUT FORTH BY ID. COUNSEL. AS REGARDS HIS CLAIM OF 30% REBATE ON RATE OF PURE SILVER ON ACCOUNT OF IMPURITY OF SILVER AND GROSS PROFIT, HE HAS FILED COPY OF ASSESSMENT ORDER PASSED IN THE CASE OF SHRI RAMESH KUMAR GARG U/S 158BC DT. 28.05.1999 IN WHICH REBATE OF 30% HAS BEEN ALLOWED IN CASE OF GOLD JEWELLERY, COPY OF WHICH HAS BEEN PROVIDED BY ID. COUNSEL DURING THE COURSE OF HEARING. LD. COUNSEL FURTH ER FILED COPY OF APPEAL ORDER IN THE CASE OF SAME ASSESSEE WHERE CLAIM OF IMPURITY TO THE EXTENT OF 30% HAS BEEN ACCEPTED. THOUGH I AGREE THAT THE RATE OF PURE SILVER CANNOT BE THE SAME FOR SILVER ORNAMENTS, BUT I FEEL THAT REBATE OF 25% FROM THE RATE OF P URE SILVER WILL MEET THE END OF JUSTICE. A O IS ACCORDINGLY ORDERED TO VALUE OF UNDISCLOSED INCOME IN FORM OF SILVER JEWELLERY BY CALCULATING THE VALUE OF SILVER JEWELLERY AT RS. 5588.00 PER KG. ACCORDINGLY, THE DISCLOSED INCOME IN FORM OF SILVER ITEMS IS CALCULATED AS UNDER: PARTICULARS WIGHT (KGS.) STOCK FOUND DURING THE COURSE OF SEARCH 90.000 LESS: STOCK RECORDED IN BOOKS OF ACCOUNT 64.074 BALANCE 25.926 LESS: JEWELLERY FOUND ON ACCOUNT OF PAWNING AND REPAIRS 0.122 UNDISCL OSED INCOME IN FORM OF SILVER ITEMS 25.804 PRINT TO PDF WITHOUT THIS MESSAGE BY PURCHASING NOVAPDF ( HTTP://WWW.NOVAPDF.COM/ ) : - 12 - : ACCORDINGLY, UNDISCLOSED INCOME IN FORM OF GOLD JEWELLERY IS CALCULATED AT RS.1,44,193/ - AS AGAINST ASSESSED FIGURE AT RS.1,93,700/ - . 8 . AGGRIEVED, THE REVENUE HAS PREFERRED AN APPEAL BEFORE THE TRIBUNAL AND TH E LD. D.R. HAS PLACED RELIANCE UPON THE ORDER OF THE ASSESSING OFFICER. BUT HE COULD NOT POINT OUT ANY SPECIFIC DEFECT IN THE ORDER OF THE LD. CIT(A) WHILE ADJUDICATING THE ISSUE. 9 . THE LD. COUNSEL FOR THE ASSESSEE, ON THE OTHER HAND, HAS PLACED HEAVY REL IANCE UPON THE ORDER OF THE LD. CIT(A) WITH THE SUBMISSION THAT THERE IS SLIGHT DIFFERENCE IN WEIGHT OF GOLD ITEMS AND THE DIFFERENCE WAS DULY EXPLAINED BEFORE THE LD. CIT(A). 10 . WE HAVE CAREFULLY EXAMINED THE ORDERS OF THE LOWER AUTHORITIES IN THE LIGHT OF R IVAL SUBMISSIONS AND WE FIND THAT THE ISSUE WAS PROPERLY EXAMINED BY THE LD. CIT(A) AND BEING PARTLY CONVINCED WITH THE EXPLANATIONS OF THE ASSESSEE, THE UNDISCLOSED INCOME IN GOLD JEWELLERY WAS REDUCED FROM RS.1,93,700/ - TO RS.1,44,193/ - . SINCE NO INFIRM ITY IS POINTED OUT IN THE ORDER OF THE LD. CIT(A), WE CONFIRM THE SAME. 11 . APROPOS GROUND NO.3, IT IS NOTICED THAT DURING THE COURSE OF SEARCH CLAIMANT OF CERTAIN ITEMS WERE NOT FOUND BY THE ASSESSING OFFICER AND HE ACCORDINGLY MADE ADDITION OF RS.69,016/ - , A GAINST WHICH AN APPEAL WAS FILED BEFORE THE LD. CIT(A) WITH THE SUBMISSION THAT WHENEVER ANY CUSTOMER COMES TO HIS SHOP AND GIVES ANY JEWELLERY FOR REPAIRING AS PER PREVALENT PRACTICE, INDICATION OF CUSTOMERS ADDRESS IS NOTED BECAUSE THERE IS NOTHING LIKE RISK INVOLVED IN ENTIRE AFFAIR. THEREFORE, COMPLETE ADDRESS WAS NOT NOTED. WHILE ADJUDICATING THE ISSUE, THE LD. CIT(A) HAS NOTED THAT OUT OF TOTAL 54 PERSONS, ONLY 15 PERSONS WERE NOT TRACEABLE. HE ACCORDINGLY PARTLY ACCEPTED THE CONTENTIONS OF THE AS SESSEE AND REDUCED THE ADDITION FROM RS.69,016/ - TO RS.34,508. PRINT TO PDF WITHOUT THIS MESSAGE BY PURCHASING NOVAPDF ( HTTP://WWW.NOVAPDF.COM/ ) : - 13 - : 12 . AGGRIEVED, THE REVENUE HAS PREFERRED AN APPEAL BEFORE THE TRIBUNAL AND PLACED HEAVY RELIANCE UPON THE ORDER OF THE ASSESSING OFFICER, WHEREAS THE LD. COUNSEL FOR THE ASSESSEE, BESIDES PLACING R ELIANCE UPON THE ORDER OF THE LD. CIT(A), HAS CONTENDED THAT OUT OF 54 PERSONS, ONLY 15 WERE TRACEABLE. THEREFORE, IT IS NOT PROPER TO HOLD THAT THE ASSESSEE HAS NOT F URNISHED COMPLETE DETAILS OF THE CUSTOMERS WHO CAME TO HIS SHOP FOR PURCHASE OF REPAIRIN G OF JEWELLERIES. 13 . HAVING GONE THROUGH THE ORDERS OF THE LOWER AUTHORITIES, WE FIND THAT THE LD. CIT(A) HAS PROPERLY ADJUDICATED THE ISSUE IN THE LIGHT OF THE FACT THAT OUT OF TOTAL 54 PERSONS, ONLY 15 PERSONS WERE NOT TRACEABLE AND HE ACCORDINGLY REDUCED THE ADDITION BY 50%. SINCE WE FIND NO INFIRMITY IN HIS ORDER, WE CONFIRM THE SAME. 14 . IN THE RESULT, APPEAL OF THE REVENUE STANDS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 25.6.2014. SD/ - SD/ - [ A. K. GARODIA ] [ S UNIL KUMAR Y ADAV ] ACCOUNTANT ME MBER JUDICIAL MEMBER DATED: 25 TH JUNE , 2014 JJ: 1906 COPY FORWARDED TO: 1 . APPELLANT 2 . RESPONDENT 3 . CIT(A) 4 . CIT 5 . DR ASSISTANT REGISTRAR PRINT TO PDF WITHOUT THIS MESSAGE BY PURCHASING NOVAPDF ( HTTP://WWW.NOVAPDF.COM/ )