SHRI GOPAL AGRAWAL, Ratlam V. THE ITO WARD 1, Ratlam

ITA 614/IND/2013

• Counselvise Citation: 61422714 RSA 2013
• Duration Of Justice: 2 year(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-11-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 15-10-2015
• Assessment Year: 2007-2008
• Appeal Filed On: 18-10-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R A VERMA
• Assessee Lawyers: S K AGRAWAL
• Section: 133A

Judgement Text

GOPAL AGRAWAL ITA NO. 614/IND/2013 1 IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH, INDORE SHRI B.C. MEENA, HONBLE ACCOUNTANT MEMBER ITA NO.614/IND/2013 A.Y.2007-08 SHRI GOPAL AGRAWAL RATLAM ::: APPELLANT VS INCOME TAX OFFICER-I RATLAM ::: RESPONDENT APPELLANT BY SHRI S.K. AGRAWAL RESPONDENT BY SHRI R.A. VERMA DATE OF HEARING 15.10.2015 DATE OF PRONOUNCEMENT 2 .1 1 .2015 O R D E R THIS APPEAL FILED BY THE ASSESSEE EMANATES FROM THE ORDER OF THE LEARNED CIT(A), UJJAIN, DATED 20.9.2013. 2. THE ASSESSEE IS ENGAGED IN THE BUSINESS OF TRADING IN GOLD AND SILVER ORNAMENTS. A SURVEY WAS CONDUCTED U/S 133A OF THE ACT ON 7.7.2006. THE RETURN OF INCOME W AS FILED GOPAL AGRAWAL ITA NO. 614/IND/2013 2 DECLARING INCOME AT RS.4,76,470/-. DURING THE SURVEY PROCEEDINGS PHYSICAL STOCK OF 1714 GMS OF GOLD ORNAME NTS WAS FOUND. AS PER BOOKS, THE STOCK WAS ONLY OF 627 GM S OF GOLD. THE DIFFERENCE WAS EXPLAINED BY THE ASSESSEE AS UNDER :- I. BELONG TO MOHANLAL JI (JIJA JI) 135 GMS II. BELONG TO LAXMI NARAYAN JI (JIJA JI) 249 GMS III BELONG TO WIFE OF YOUNGER BROTHER 235 GMS TOTAL - 619 GMS EXCESS GOLD WAS FOUND 468 GMS TOTAL 1087 GMS THE ASSESSEE DECLARED 468 GMS EXCESS GOLD OF RS. 4,44,600/- AS ADDITIONAL INCOME. THE ASSESSING OFFICER DID NOT BELIEVE THE ASSESSEES CLAIM REGARDING ORNAMENTS BELONGING TO MOHANLAL, LAXMI NARAYAN AND WIFE OF THE YOUNGER BROTHER SMT. RAJNI AGRAWAL MADE AT THE TIME O F SURVEY. ASSESSEE CLAIMS THAT THESE ORNAMENTS WERE GIVE N BY RELATIVES FOR DISPLAY ON THE NEWLY OPENED SHOW RO OM. THESE PERSONS WHO ARE RELATIVES OF THE ASSESSEE HAVE ALS O GOPAL AGRAWAL ITA NO. 614/IND/2013 3 CONFIRMED THIS FACT IN THEIR CONFIRMATIONS AND STATEMEN TS, HENCE ADDITION SHOULD BE DELETED. 3. I HAVE HEARD BOTH THE SIDES. THESE PERSONS WERE CL OSE RELATIVES OF THE ASSESSEE. THE ASSESSEE HAS EXPLAINED TH E SOURCE OF STOCK AT THE TIME OF SURVEY ITSELF. THE EX CESS STOCK WAS DECLARED AS ADDITIONAL INCOME. IT IS A FACT THAT THE ASSESSEE HAS OPENED A NEW SHOWROOM AND ASKED CLOSE RELATIVES FOR ORNAMENTS TO BE PLACED ON DISPLAY IN THI S SHOW ROOM. THESE PERSONS HAVE CONFIRMED THIS FACT AND HAVE GIVEN THE STATEMENTS CONFIRMING THE CLAIM OF THE ASSES SEE THAT THESE ORNAMENTS BELONGING TO THEM AND WERE GIVEN FOR DISPLAY. THEY HAVE ALSO CONFIRMED THIS FACT IN THEIR STATEMENTS. REVENUE HAS FAILED TO CONTROVERT THE STATEMENTS OF THESE PERSONS. I, THEREFORE, HOLD THAT THE LEARNED CIT(A) WAS NOT JUSTIFIED IN CONFIRMING THE ADD ITION. THE ASSESSEE OPENED A NEW SHOWROOM AND THESE PERSONS (CLOSE RELATIVES) CONFIRMED THAT THEY HAVE GIVEN THE GOPAL AGRAWAL ITA NO. 614/IND/2013 4 ORNAMENTS FOR DISPLAY. I, THEREFORE, ALLOW THE APPEAL OF THE ASSESSEE 4. IN THE RESULT, THE APPEAL IS ALLOWED. PRONOUNCED IN OPEN COURT ON 2 ND NOVEMBER, 2015 SD (B.C.MEENA) ACCOUNTANT MEMBER 2 ND NOVEMBER, 2015 DN/-