ACIT, Jaipur V. BIHARI LAL HOLA RAM, Jaipur

ITA 827/JPR/2010

• Counselvise Citation: 82723114 RSA 2010
• Duration Of Justice: 1 year(s) 2 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-09-2011
• Appeal Filed By: Department
• Order Result: Partly Allowed
• Bench Allotted: B
• Assessment Year: 2006-2007
• Appeal Filed On: 24-06-2010
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: SUBHASH CHANDRA
• Keywords: Unexplained expenditure; Loose papers; Deemed to accrue or arise in india
• Section: 133A; 69

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL JAIPUR BENCH B JAIPUR (BEFORE SHRI R.K.GUPTA AND SHRI N.L.KALRA) ITA NO. 827/ JP/2010 ASSESSMENT YEAR 2006-07 PAN: AAEFB 3499 A THE ACIT VS. BIHARI LAL HOLA RAM CIRCLE- 1 75, GOPALJI KA RASTA JAIPUR JAIPUR (APPELLANT ) (RESPONDENT) DEPARTMENT BY : SHRI SUBHASH CHANDRA ASSESSEE BY: SHRI P.C. PARWAL DATE OF HEARING: 18-07-2011 DATE OF PRONOUNCEMENT: 16-09-2011 ORDER PER N.L. KALRA, AM:- THE REVENUE HAS FILED AN APPEAL AGAINST THE ORDER OF THE LD. CIT(A)- 1, BIKANER (CAMP AT JAIPUR) DATED 29-03-2010 FOR TH E ASSESSMENT YEAR 2006- 07. 2.1 THE FIRST GROUND OF THE REVENUE IS THAT THE LD . CIT(A) HAS ERRED IN RESTRICTING THE ADDITION OF RS. 22,77,364/- MADE BY THE AO ON ACCOUNT OF DIFFERENCE IN STOCK WORKED OUT DURING THE COURSE OF SURVEY OPERATION CARRIED AT THE BUSINESS PREMISES OF THE ASSESSEE TO RS. 2,4 2,338/- 2 2.2 THE SURVEY U/S 133A OF THE ACT WAS CONDUCTED AT THE BUSINESS PREMISES OF THE ASSESSEE ON 18-08-05 ALONGWITH SURV EY AT OTHER BUSINESS PREMISES OF THE GROUP CONCERNS. PHYSICAL INVENTORY OF STOCK WAS PREPARED AT THE TIME OF SURVEY AND THIS STOCK WAS GOT VALUED FR OM REGISTERED VALUER. THE STOCK FOUND ON THE DATE OF SURVEY WAS OF RS. 2,49,1 2,240/- AND THE STOCK AS PER BOOKS OF ACCOUNT WAS TO THE EXTENT OF RS. 44,20 ,000/-. THE DIFFERENCE IN STOCK CAME TO RS. 1,79,35,023/-. SHRI NEERAJ LAKHI PARTNER OF THE FIRM OFFERED EXCESS STOCK OF RS. 1,79,35,023/- AS UNDIS CLOSED INCOME FOR THE ASSESSMENT YEAR 2006-07 VIDE STATEMENT RECORDED DUR ING THE SURVEY. HOWEVER, IN THE RETURN OF INCOME, THE ASSESSEE HAS DISCLOSED RS. 1,35,61,270/- AS EXCESS STOCK. THE AO THEREFORE, RE QUIRED THE ASSESSEE TO EXPLAIN AS TO WHY EXCESS STOCK OF RS. 1,35,61,270/- HAS BEEN DISCLOSED IN THE RETURN AS AGAINST RS. 1,79,35,023/- OFFERED FOR TAX ATION IN THE STATEMENT GIVEN BY ONE OF THE PARTNER AT THE TIME OF SURVEY. THE AS SESSEE FILED AN EXPLANATION VIDE LETTER DATED 17-06-2008. IT HAS BEEN MENTIONED THAT ON THAT DATE SOME PURCHASES AND SALES WERE NOT RECORDED IN THE BOOKS OF ACCOUNT. AFTER CONSIDERING SUCH ENTRIES, THE ASSESSEE PREPARED A R ECASTED TRADING ACCOUNT. IT WAS FURTHER POINTED OUT THAT THE DEPARTMENT HAS VAL UED THE STOCK AT MARKET VALUE AND REDUCED THE VALUE BY 10% , THE GROSS PROF IT, TO ASCERTAIN THE COST OF THE GOODS FOUND AT THE TIME OF SURVEY. THE ASSESSEE HAS APPLIED THE G.P.RATE 3 OF 15.89% TO ARRIVE AT THE COST OF THE INVENTORY PR EPARED BY THE DEPARTMENT. THE ASSESSEE HAS DISCLOSED THE G.P.RATE OF 18.68% . THE ASSESSEE HAS REVISED THE WORKING OF THE COST OF THE STOCK BY APP LYING THE G.P.RATE ACTUALLY DISCLOSED BY THE ASSESSEE FOR THE ASSESSME NT YEAR 2005-06. 2.3 THE ASSESSEE ALSO FURNISHED THE G.P.RATE CHART FOR THE PRECEDING THREE ASSESSMENT YEARS I.E. 18.68%, 18.44% AND 18.35%. TH E AO AT PAGES 4 TO 14 OF THE ASSESSMENT ORDER HAS REFERRED TO THE NOTICE ISSUED BY HIM AFTER CONSIDERING THE REPLY OF THE ASSESSEE. THE AO REQUI RED THE ASSESSEE TO FURNISH THE RECASTED TRADING ACCOUNT UPTO THE DATE OF SURVEY AND FROM THE DATE OF SURVEY TO THE YEAR END WITHOUT CONSIDERING THE EXCESS STOCK OFFERED TO TAX AND JUSTIFY THE G.P.RATE FOR BOTH THE PERIOD S. IT WAS MADE CLEAR THAT THE CLAIM OF PURCHASES OF RS. 14,55,382/- CANNOT BE CONSIDERED UPO THE DATE OF SURVEY. THE ASSESSEE HAS SHOWN THE PURCHASES TO THE EXTENT OF RS. 14,35,382/- FROM FOUR PARTIES AND SUCH PURCHASES WE RE NOT CONSIDERED AT THE TIME OF SURVEY. THE SALES WHICH HAVE BEEN SHOWN BY THE ASSESSEE IN THE TRADING ACCOUNT UPTO THE DATE OF SURVEY WERE NOT IN CLUDED BY THE SURVEY TEAM. ACCORDING TO THE AO, THE BOOKS OF ACCOUNT WE RE MAINTAINED ON COMPUTER AND WERE NOT IMPOUNDED AND THE ADJUSTMENT IN PURCHASE COULD HAVE BEEN EASILY MANIPULATED. THE PURCHASES FROM TH E LOCAL PARTIES ARE ALSO NON-VERIFIABLE. THE ASSESSEE WAS ASKED TO PRODUCE S UCH SUPPLIERS WITH 4 RELEVANT DETAILS/ RECORDS FOR VERIFICATION OF THE G OODS PURCHASED FROM THEM. INSTEAD OF PRODUCING THESE PARTIES, THE ASSESSEE ST ATED THAT CONFIRMATIONS HAVE BEEN FILED AND SUMMONS MAY BE ISSUED TO SUCH S UPPLIERS FOR PERSONAL ATTENDANCE. THE AO FURTHER NOTICED THAT THOUGH THE PURCHASE BILLS IN RESPECT OF PURCHASES TO THE EXTENT OF RS. 14,55,282/- SHOWE D THE PURCHASES BEFORE THE SURVEY DATE YET THE PAYMENTS HAVE BEEN MADE AFT ER THE DATE OF SURVEY. THE DOCUMENTS FOUND AT THE PREMISES OF M/S. KHUSHBO O JEWELLERS SHOWED THAT THE PURCHASES WERE BEING MADE THROUGH BROKERS. THE CLAIM OF PURCHASES NOW BEING MADE IS NOT VERIFIABLE FROM SUCH DOCUMENT S. WHEN THE ASSESSEE IS MAKING PURCHASES THROUGH BROKER THEN SUCH PURCHASES WHICH ARE NOW BEING CLAIMED SHOULD HAVE BEEN VERIFIABLE FROM SUCH DOCU MENTS. THE AO FURTHER NOTICED THAT THE PARTIES FROM WHOM THE ASSESSEE HAS SHOWN PURCHASES ARE THE PARTIES WHICH HAVE BEEN NOTICED BY THE REVENUE TO B E INDULGING IN ISSUING THE BOGUS BILLS. SHRI NEERAJ LAKHI, PARTNER OF THE FIRM WAS SPECIFICALLY ASKED TO STATE WHETHER ANY BILLS FOR THE GOODS WHICH WER E LYING IN THE BUSINESS PREMISES WERE STILL TO BE ENTERED BUT THE PARTNER STATED THAT STOCK AS PER BOOKS HAS BEEN CORRECTLY TAKEN AT RS. 44.20 LACS. H OWEVER, THE G.P.RATE OF 18.68% WAS ACCEPTED BY THE AO TO DETERMINE THE COST PRICE OF THE STOCK. THE AO ACCORDINGLY DETERMINED EXCESS STOCK AT RS. 1 ,58,38,634/- WHILE THE 5 ASSESSEE HAS OFFERED THE EXCESS STOCK OF RS. 1,35,6 1,270/-. THE AO ACCORDINGLY MADE THE ADDITION OF RS. 22,77,364/-. 2.4 BEFORE THE LD. CIT(A), THE ASSESSEE STATED THAT THE AO HAS IGNORED THE PURCHASES OF RS. 14,55,382/- AND SALES OF RS. 2,95, 018/-. THE PURCHASES INCLUDED PURCHASES AMOUNTING TO RS. 7,03,570/- FROM M/S. ROYAL GEMS SOURCE, BANGKOK. BEFORE THE LD. CIT(A), IT WAS SUBM ITTED THAT PURCHASE ARE SUPPORTED BY PURCHASE INVOICE AND THE COPY OF LED GER ACCOUNT OF THAT PARTY IN THE BOOKS OF ACCOUNT OF THE ASSESSEE. IN RESPEC T OF PURCHASES FROM FOUR OTHER PARTIES, IT WAS STATED THAT SUCH PURCHASES AR E SUPPORTED FROM PURCHASE INVOICE. THE AO SHOULD HAVE GIVE CREDIT IN RESPECT OF THE PURCHASES TO THE EXTENT OF RS. 14,55,382/-. THE ASSESSEE HAS WORKED OUT THE EXCESS STOCK IN THE CASE INDEPENDENTLY. EVEN ON THE REWORKING OF THE EXCESS STOCK, IT WILL COME TO RS. 1,29,98,798/- WHILE THE ASSESSEE HAS OF FERED THE EXCESS STOCK OF RS. 1,35,61,270/-. IT WAS REQUESTED THAT EXCESS STO CK OUGHT TO HAVE BEEN DETERMINED IN TOTALITY AND NO FURTHER ADDITION ON A CCOUNT OF EXCESS STOCK AS DETERMINED BY THE AO SHOULD BE MADE. 2.5 THE LD. CIT(A) AFTER CONSIDERING THE SUBMISSION S OF THE ASSESSEE REDUCED THE TRADING ADDITION TO RS. 2,42,338/- AFTE R OBSERVING AS UNDER:- I HAVE CONSIDERED THE FACTS OF THE CASE AND THE S UBMISSIONS MADE. FROM THE PERUSAL OF DETAILS ON RECORD, IT IS SEEN THAT T HE MARKET VALUE OF PHYSICAL STOCK AT THE TIME OF SURVEY WAS CALCULATED AT RS. 4,90,17 ,459/-. FROM THIS VALUE 6 DEDUCTION OF GP AT 10% WAS ALLOWED BY THE SURVEY PA RTY AND THE COST OF PHYSICAL STOCK WAS DETERMINED AT RS. 4,41,15,713/-. THIS WAS FURTHER REDUCED BY THE A O BY ADOPTING THE GP @ 18.68% (WHICH WAS THE ACTUAL G P OF THE APPELLANT AT THE TIME OF SURVEY). THIS APPROACH OF THE A O WAS FAIR AND REASONABLE EXCEPT FOR THE FACT THAT HE IGNORED THE VITAL FACT OF INTERMINGLIN G OF STOCK OF THE OTHER CONCERNS WITH THE APPELLANT FIRM. NON CONSIDERATION OF BOOK STOCK OF OTHER CONCERNS IS NOT LOGICAL IF THE SAME YARDSTICK IS APPLIED. IF THE SA ME IS CONSIDERED BY APPLYING GP @ 14.92% AMOUNTING TO RS. 35,96,498/- (WEIGHTED AVE RAGE OF ALL FOUR GROUP CONCERNS I.E. OTHER THAN THE APPELLANT) THE MARKET VALUE STOCK OF OTHER GROUP CONCERNS COMES TO RS. 2,05,08,721/- FROM WHICH BOOK STOCK OF RS. 2,20,35,551/- IS DEDUCTED LEAVING A BALANCE OF RS. 15,26,820/-. T HE NEXT MOOT QUESTION IS WHETHER CREDIT FOR PURCHASE OF 14,55,382/- OUGHT TO HAVE BEEN GIVEN BY THE A O OR NOT WHILE CALCULATING THE BOOK STOCK OF RS. 44,20,0 00/-. THE CLAIM OF THE APPELLANT REGARDING SUCH PURCHASES INCLUDING PURCHASES OF RS. 7,03,570/- FROM M/S. ROYAL GEMS SOURCE, BANGKOK CAN BE ACCEPTED AS THE GOODS I N QUESTION HAD BEEN RECEIVED BY THE APPELLANT BEFORE DATE OF SURVEY BUT NOT CONSIDERED IN THE BOOK STOCK. SINCE CORROBORATIVE AND INDEPENDENT EVIDENCE IN THE FORM OF CUSTOMS CLEARANCE ON 11.8.2005 IS AVAILABLE THESE PURCHASES CAN BE ACCEPTED. MERELY BECAUSE THEY WERE MADE FROM ASSOCIATED CONCERNS IS NOT OF ANY CONSEQUENCE. THERE IS NO OTHER MATERIAL TO PROVE OTHERWISE. AS S UCH CREDIT COULD BE GIVEN IN RESPECT OF THESE IMPORTED PURCHASES OF RS. 7,03,570 /-. BUT AS REGARDS THE BALANCE PURCHASES FROM THE LOCAL PARTIES CREDIT COULD NOT B E GIVEN BECAUSE THE SUMMONS ISSUED TO SUCH PARTIES WERE RETURNED BACK WITH THE REMARK NOT FOUND. THE EVIDENCES FURNISHED BY THE APPELLANT IN SUPPORT OF SUCH PURCHASES AT BEST CAN ONLY ESTABLISH PAPER EXISTENCE OF SUCH PARTIES. BUT THE FACT REMAINS THAT THE PURCHASES FROM SUCH PARTIES REMAINED UNVERIFIED AND NO CREDEN CE CAN BE GIVEN TO SUCH PURCHASES. CONSIDERING THE TOTALITY OF CIRCUMSTANCE S, THE POSITION OF EXCESS STOCK WOULD WORK OUT AS UNDER: 7 PARTICULARS APPELLANT FIRM OTHER GROUP FIRMS TOTAL MARKET VALUE OF PHYSICAL STOCK IN SURVEY 2,49,12,240/- 2,41,05,219/- 4,90,17,459/- LESS: GP RATE @ 18.68% AND 14.92% RESPECTIVELY (AS ON THE DATE OF SURVEY) 46,53,606/- 35,96,498/- 82,50,104/- 2,02,58,634/- 2,05,08,721/- 4,07,67,335/- LESS: BOOK STOCK 49,28,196/- 2,20,35,551/- 2,69,63,747/- EXCESS STOCK / SHORT STOCK 1,53,30,438/- (15,26,830/-) 1,38,03,608/- THUS, TAKEN TOGETHER THE EXCESS STOCK WORKS OUT TO RS. 1,38,03,608/- OFFERED BY THE ASSESSEE. IN THESE CIRCUMSTANCES, THE EXCESS ST OCK OFFERED BY THE APPELLANT AT RS. 1,35,61,720/- IS FOUND TO BE SHORT BY RS. 2,42, 338/- WORKED OUT ABOVE. THE ADDITION IS THUS SUSTAINED TO ABOVE STATED EXTENT O NLY. 2.6 DURING THE COURSE OF PROCEEDINGS BEFORE US, THE LD. DR DREW OUR ATTENTION TO THE STATEMENT OF SHRI NEERAJ LAKHI REC ORDED AT THE TIME OF SURVEY. SHRI NEERAJ LAKHI WAS REQUIRED TO STATE AS TO WHETHER ANY PURCHASE OR SALE BILLS ARE STILL TO BE ENTERED IN THE BOOKS OF ACCOUNT. THE BOOK STOCK WAS ACCEPTED BY THE PARTNER AND HENCE THERE WAS NO QUESTION OF MAKING ANY ADJUSTMENT IN RESPECT OF THE ENTRIES MADE AFTER SUR VEY. IT WAS FURTHER POINTED OUT BY THE LD. DR THAT PURCHASES ARE FROM THE PARTI ES WHICH HAVE BEEN NOTICED BY THE REVENUE TO HAVE BEEN INDULGING IN IS SUING THE BOGUS BILLS. THE PAYMENTS TO SUCH PARTIES HAVE BEEN MADE AFTER S URVEY AND SUCH PARTIES HAVE NOT BEEN PRODUCED BEFORE THE AO. OUR ATTENTION WAS DRAWN TO ANNEXURE- A ATTACHED WITH THE ASSESSMENT ORDER. EXC ESS STOCK WAS WORKED OUT BY THE ASSESSEE AT RS. 1,79,35,023/-. THIS ANNE XURE PREPARED AT THE TIME 8 OF SURVEY CONTAINS THE TRADING ACCOUNT UPTO THE DAT E OF SURVEY AND THE STOCK AS PER BOOKS OF ACCOUNT WAS AT RS. 44.20 LACS. THE LD. DR ALSO SUBMITTED THAT THE ASSESSEE IS TAKING BENEFIT OF SHORTAGE OF STOCK IN CASE OF OTHER CONCERNS AND THAT HAS BEEN ADJUSTED AGAINST EXCESS STOCK. TH E EXCESS STOCK SHOULD BE WORKED OUT IN THE CASE OF THE ASSESSEE. IT WAS THER EFORE, SUBMITTED THAT THE LD. CIT(A) HAS ERRED IN REDUCING THE TRADING ADDITION T O RS. 2,42,338/- AS AGAINST RS. 22,77,364/- MADE BY THE AO. 2.7 DURING COURSE OF PROCEEDINGS BEFORE US, THE LD. AR HAS FILED THE WRITTEN SUBMISSIONS ALONGWITH PAPER BOOK CONTAINING 79 PAGES. THE PHYSICAL STOCK OF THE ASSESSEE FIRM AND THE SISTER CONCERN W AS GOT VALUED FROM THE VALUER AT RS. 4,90,17,460/-. THE BOOK STOCK IN RESP ECT OF ALL THE CONCERNS WAS DETERMINED AT RS. 2,61,80,690/-. THUS THE EXCESS ST OCK OF ALL THE CONCERN WERE ARRIVED AT RS. 2,28,36,769/- AND THE DETAILS A RE AS UNDER:- NAME OF THE FIRM AS PER BOOKS PHYSICAL EXCESS BIHARI LAL HOLA RAM 44,20,000/- 2,49,12,240/- 2,04, 92,240/- KUSHBOO JEWELLERS 69,00,000/- LUCKY GEMS 71,89,022/- SIDDHANT JEWELLS 61,37,239/- ROYAL GEM SOURCE 15,34,429/- TOTAL OF OTHER GROUP FIRMS 2,17,60,690/- 2,41,05,219/- 23,44,529/- GRAND TOTAL 2,61,80,690/- 4,90,17,459/- 2,28,36,769/- 2.8 THE LD. AR FURTHER SUBMITTED THAT IT IS UNDISPU TED THE STOCK WAS TAKEN AT MARKET RATE AND THE AO HAS REDUCED THE G.P.RATE FOR ARRIVING AT THE 9 QUANTUM OF EXCESS STOCK. THE ASSESSEE WHILE FILING THE RETURN WORKED OUT THE CORRECT BOOK STOCK OF ALL THE CONCERNS ON THE DATE OF SURVEY AT RS. 2,76,67,316/- AFTER ENTERING THE PURCHASE AND SALES MADE BEFORE SURVEY BUT NOT RECORDED IN THE BOOKS AND AVERAGE G.P.RATE OF A LL THE CONCERNS WAS TAKEN AT 15.89%. THE EXCESS STOCK WAS THEREFORE, ES TIMATED AT RS. 1,35,61,270/-. IT WAS STATED THAT SINCE ENTIRE STOC K IS CONSIDERED IN THE HANDS OF THE ASSESSEE, THEREFORE, REDUCTION FOR G.P.RATE SHOULD BE CONSIDERED AT 18.68% FROM THE VALUE OF PHYSICAL STOCK. ACCORDING TO THE ASSESSEE, THE EXCESS STOCK FOUND DURING THE COURSE OF SURVEY IN R ESPECT OF ALL THE CONCERNS WILL BE TO THE EXTENT OF RS. 1,22,34,684/-. THE WOR KING AS GIVEN BY THE ASSESSEE IS AS UNDER:- 'TOTAL VALUE OF PHYSICAL STOCK AS INVENTORISED BY S URVEY PARTY: RS.4,90,17,460/- 75, GOPAL JI KA RASTA 2,49,12,240/- NARENDRA PLAZA 2,41,05,219/- LESS: GP RATE OF 18.68% RS. 91,15,460 /- VALUE OF STOCK FOUND DURING THE COURSE OF SURVEY RS.3,99,02,000/- LESS STOCK AS PER BOOKS OF ACCOUNTS AS ON 18-08-05 BIHARILAL HOLARAM RS.56,31,765/- LAKHI GEMS RS.68,77,228/- KUSHBOO JEWELLERS RS.74,77,900/- SIDDHANT JEWELS RS.61,76,905/- ROYAL GEMS SOURCE RS.15,10,518/- RS.2,76,67,316/- EXCESS STOCK FOUND DURING THE COURSE OF SURVEY RS.1,22,34,684/- 2.9 THE LD. AR HAS MADE THE FOLLOWING SUBMISSIONS 10 1. FROM THE FACTS STATED ABOVE AND AS BORNE OUT F ROM THE ORDERS OF THE LOWER AUTHORITIES, FOLLOWING TWO ISSUES ARISES FOR CONSID ERATION:- (A) WHETHER AO WAS CORRECT IN IGNORING THE PURCHASE OF RS.14,55,382/- AND SALES OF RS.2,95,018/- NOT RECORDED IN THE BOOKS OF ACCOU NTS AT THE TIME OF SURVEY, IN DETERMINING THE BOOK STOCK OF THE ASSESSEE FIRM. (B) WHETHER THE AO IS CORRECT IN NOT CONSIDERING THE ST OCK OF VARIOUS SISTER CONCERN TOGETHER IN DETERMINING THE EXCESS STOCK. 2. THE DETAILS OF THE PURCHASE WHICH WERE NOT RECOR DED IN THE BOOKS OF ACCOUNT ON THE DATE OF SURVEY ARE AS UNDER:- SR. NO PARTICULARS AMOUNT 1 ROYAL GEMS SOURCE, BANGKOK BILL NO. 004/2005 DATED 11-08-05 7,03,570/- 2 LAXMI JEWELLERS, JAIPUR BILL NO. 127 DATED 01-08-05 2,54,864/- 3 P S GEMS, JAIPUR BILL NO. 51 DATED 02-08-05 2,17,287/- 4 LAXMI JEWELLERS, JAIPUR BILL NO. 128 DATED 03-08-05 2,44,353/- TOTAL 14,55,382/- OUT OF THESE PURCHASES, PURCHASE OF RS.7,03,570/- F ROM M/S ROYAL GEMS SOURCE CO. LTD, BANGKOK IS VIDE INVOICE NO. 4 DATED 09-08-05 WHICH WAS CLEARED FROM CUSTOM AUTHORITIES ON 11-08-05. THE COPY OF THE INVOICE AND THE RELEVA NT LEDGER ACCOUNT IS AT PB 27-28. THIS IS NOT DISPUTED BY THE AO. THUS THIS PURCHASE IS FU LLY VERIFIABLE. THE ANOTHER THREE PURCHASE FROM TWO PARTIES ARE LOCAL PURCHASE FOR WH ICH THE BILLS ARE AT PB 29-31. THE AO HAS DOUBTED THESE PURCHASE ON FLIMSY GROUND. HE HAS ALSO NOT CAUSED ANY DIRECT ENQUIRY FROM THESE PARTIES IN SPITE OF THE SPECIFIC REQUEST BY THE ASSESSEE. THESE PARTIES ARE ALSO NOT THE IDENTIFIED ACCOMMODATION PARTIES OF THE DEP ARTMENT AS ALLEGED BY THE AO. IN FACT THE AO HIMSELF HAS NOT CONSIDERED THESE PARTIES AS ACCOMMODATION PARTIES WHILE MAKING THE ADDITION IN RESPECT OF SUCH ALLEGED UNVERIFIABL E PURCHASE IN PARA 10.27 PAGE 26-27 OF HIS ORDER. AS REGARD SALES, AO HAS MADE NO COMMENT. THIS APART, ASSESSEE WAS NEVER ASKED IN COURSE OF SURVEY, AS TO WHETHER, ANY BILLS REMAIN TO BE UNRECORDED IN THE BOOKS OF ACCOUNTS WHILE ARRIVING AT THE BOOK STOCK. IN TH ESE CIRCUMSTANCES THE PURCHASE AND 11 SALES WHICH COULD NOT BE RECORDED IN THE TRADING AC COUNT SUBMITTED IN THE COURSE OF SURVEY NEEDS TO BE TAKEN INTO ACCOUNT FOR ARRIVING AT THE CORRECT BOOK STOCK. ON THAT BASIS THE BOOK STOCK OF ASSESSEE FIRM NEEDS TO BE CONSIDE RED AT RS.56,31,765/- AS AGAINST RS.44,20,000/- TAKEN BY THE AO. 3. THE CIT (A) AFTER CONSIDERING EVIDENCE ON RECORD HAS ACCEPTED THE PURCHASES OF RS. 7,03,570/- AND SALES OF RS. 2,95,018/- AS MADE PRIOR TO THE DATE OF SURVEY IN ARRIVING AT THE BOOK STOCK AND ACCORDINGLY ACCEPTED THE BOOK STOCK AT RS. 49,28,196/- AS AGAINST RS. 44,20,000/- DETERMINED AT THE TIME OF SURVEY AN D RS. 56,31,765/- ARRIVED AT BY THE ASSESSEE. THE ASSESSEE IS NOT IN CROSS APPEAL AND T HEREFORE THE BOOK STOCK AS ARRIVED AT BY CIT (A) AT RS. 49,28,196/- NEEDS TO BE ACCEPTED. 4. THE ANOTHER ISSUE IS WHETHER STOCK OF ALL THE GR OUP CONCERN SHOULD BE CONSIDERED TOGETHER OR NOT. IT IS A FACT ON RECORD THAT IN SUR VEY STOCK OF ALL GROUP CONCERNS WERE CONSIDERED TOGETHER. THE EXCESS STOCK ARRIVED AT WA S GOT SURRENDERED IN CASE OF THE ASSESSEE. HOWEVER, IN ASSESSMENT, THE AO MADE DEPAR TURE FROM THIS AND DETERMINED THE EXCESS STOCK IN CASE OF THE ASSESSEE INDEPENDENTLY. THIS IS INCORRECT AS WHEN IN SURVEY, THE EXCESS STOCK IN THE HANDS OF THE ASSESSEE WAS D ETERMINED BY CONSIDERING THE PHYSICAL STOCK AND THE BOOK STOCK OF ALL THE CONCERNS TOGETH ER, THE SAME CANNOT BE BIFURCATED NOW, MORE PARTICULARLY WHEN SHRI NEERAJ LAKHI IN REPLY T O QUESTION NO. 3, HAS STATED THAT AT 75, GOPALJI KA RASTA, STOCK OF ASSESSEE, KHUSBOO JEWELL ERS AND SIDHARTH JEWELLERS HAS BEEN KEPT (PB 18-19) . THE CIT (A) HAS THEREFORE CORRECTLY CONSIDERED TH E ENTIRE PHYSICAL STOCK AND BOOK STOCK TOGETHER TO ARRIVE AT EXCESS STOCK A S UNDER: PARTICULARS APPELLANT FIRM OTHER GROUP FIRMS TOTAL MARKET VALUE OF PHYSICAL STOCK IN SURVEY 2,49,12,240/- 2,41,05,219/- 4,90,17,459/- LESS: GP RATE @ 18.68% AND 14.92% RESPECTIVELY (AS ON THE DATE OF SURVEY) 46,53,606/- 35,96,498/- 82,50,104/- 2,02,58,634/- 2,05,08,721/- 4,07,67,335/- LESS: BOOK STOCK 49,28,196/- 2,20,35,551/- 2,69,63,747/- EXCESS STOCK / SHORT STOCK 1,53,30,438/- (15,26,830/-) 1,38,03,608/- 12 IN VIEW OF ABOVE THE ADDITION, THE EXCESS STOCK DET ERMINED BY CIT (A) AT RS. 1,38,03,608/- BE ACCEPTED AS AGAINST EXCESS STO CK OF RS. 1,35,61,270/- OFFERED BY THE ASSESSEE AND RS. 1,58,38,634/- DETERMINED BY THE A O. THEREFORE THE ORDER OF CIT (A) IN RESTRICTING THE ADDITION FOR EXCESS S TOCK AT RS. 2,42,338/- BE UPHELD BY DISMISSING THE GROUNDS OF THE DEPARTMENT. 2.10 WE HAVE HEARD BOTH THE PARTIES. AT THE TIME OF SURVEY, THE STATEMENT OF SHRI NEERAJ LEKHI WAS RECORDED. IN ANSWER TO Q. NO. 3, SHRI NEERAJ LEKHI STATED THAT THE STOCK OF THE ASSESSEE FIRM IS AVAILABLE AT THE PREMISES 75, GOPAL JI KA .RASTA. THE STOCK OF KHUSHUBOO JEWE LLERS IS AVAILABLE AT 75, GOAPL JI KA RASTA AND IS ALSO AVAILABLE IN THE SHOP S IN NARENDRA PLAZA, THE STOCK OF SIDDHARTH JEWELLERS IS ALSO AVAILABLE AT 7 5, GOPAL JI KA RASTA. SHRI NEERAJ LEKHI STATED THAT ALL THE CONCERNS ARE NOT H AVING THE STOCK REGISTER. THE CLOSING STOCK IS ESTIMATED ON THE BASIS OF THE G.P.RATE TO BE APPLIED. IT IS TRUE THAT SHRI NEERAJ LEKHI IN HIS STATEMENT IN ANS TO Q. NO 11 ADMITTED THAT EXCESS STOCK BELONGS TO THE ASSESSEE FIRM I.E. BIHARI LAL HOLARAM. IN ANSWER TO Q. NO.12, SHRI NEERAJ LEKHI CONSIDERED TH E STOCK OF ALL THE CONCERNS AND STATED THAT EXCESS STOCK WILL BE RS. 1 ,79,35,023/-. THE PHYSICAL STOCK AS PER MARKET RATE WAS AROUND RS. 4.90 CRORES AND IF THE G.P.RATE OF 10% IS APPLIED THEN THE STOCK AT COST PRICE WILL BE AROUND RS. 4.41 CRORES AS AGAINST RS. 2.61 CRORES AS PER BOOKS AFTER CONSIDER ING THE STOCK OF ALL THE CONCERNS. HENCE, FROM THE STATEMENT, IT IS CLEAR TH AT THE STOCK AT THE BUSINESS 13 PREMISES SITUATED AT 75, GOPAL JI KA RASTA, JAIPUR WAS ALSO BELONGING TO THE OTHER CONCERNS AS WELL AS TO THE ASSESSEE CONCERN. WE THEREFORE, AGREE WITH THE FINDINGS OF THE LD. CIT(A) THAT ONE WILL HAVE T O CONSIDER OVER ALL POSITION OF THE STOCK. THE STOCK FOUND SHORT IN THE CASE OF OTHER CONCERNS IS TO BE ADJUSTED AGAINST EXCESS STOCK FOUND AT THE PREMISES SITUATED AT 75, GOPAL JI KA RASTA, JAIPUR. 2.11 PURCHASE VOUCHER ISSUED BY M/S. ROYAL GEMS, BA NGKOK IS AVAILABLE AT PAGE 27 OF THE PAPER BOOK. THIS PURCHASE VOUCHER IS SIGNED BY SUPT OF CUSTOMS, JAIPUR ON 11-08-05 AND IS IN THE NAME OF T HE ASSESSEE FIRM. IT IS NOT THE CASE OF THE REVENUE THAT SUCH ITEMS SO PURCHASE D HAD BEEN SOLD BETWEEN 11-08-05 TO 18-08-05 I.E. THE DATE OF SURVEY. THE P AYMENT IN RESPECT OF SUCH PURCHASES HAS BEEN MADE ON 25-01-06 AT RS. 7,15,323 /- AS AGAINST PURCHASE VALUE OF RS. 7,03,570/-. THE DIFFERENCE BETWEEN TH E FOREIGN EXCHANGE RATE DIFFERENCE HAS BEEN DEBITED TO THE PURCHASE ACCOUNT FOR RS. 11,573/-. IT IS THEREFORE, CLEAR THAT THE ASSESSEE HAS FILED ACCEPT ABLE EVIDENCE IN RESPECT OF THE PURCHASES TO THE EXTENT OF RS. 7,03,570/- WE TH EREFORE, FEEL THAT THE LD. CIT(A) WAS JUSTIFIED IN ACCEPTING SUCH PURCHASES. 2.12 PURCHASE VOUCHERS IN RESPECT OF OTHER THREE PA RTIES ARE AVAILABLE AT PAGES 29 TO 31 OF THE PAPER BOOK. IT IS NOTICED THA T M/S. LAXMI JEWELLERS HAS ISSUED VOUCHERS IN CONSECUTIVE NUMBERS. AS PER ORDE R OF THE AO, THESE 14 VOUCHERS ARE DATED `1-8-85 AND 3-8-85. HOWEVER, IN THE PHOTOSTAT COPY, THESE DETAILS ARE NOT LEGIBLE. IT IS NOTICED THAT I N BOTH THE VOUCHERS THE DETAILS ARE THE SAME IN RESPECT OF AMOUNT AND QUANTITY OF DIFFERENT PRECIOUS STONES AND AT THE SAME RATE. THE BILL EVEN DOES NOT CONTAI N THE TELEPHONE NUMBER. SIMILARLY THE BILL OF M/S. P.S GEMS, JAIPUR ALSO DO NOT CONTAIN ANY TELEPHONE NUMBER. THE AO HAS NOTICED THAT SUCH PARTIES HAVE B EEN FOUND TO BE INDULGING IN ISSUING BOGUS BILLS. THE LD. CIT(A) WA S THEREFORE, JUSTIFIED IN NOT ACCEPTING THE PURCHASES FROM THESE PARTIES. LOO KING TO THE WORKING OF THE ASSESSEE, WE FEEL THAT THE LD. CIT(A) WAS JUSTI FIED IN REDUCING THE TRADING ADDITION TO RS. 2,42,338/- AS AGAINST RS. 22,77,364 /- MADE BY THE AO. THUS GROUND NO. 1 OF THE REVENUE IS DISMISSED. 3.1 THE SECOND GROUND OF THE REVENUE IS THAT THE L D. CIT(A) HAS ERRED IN RESTRICTING THE TRADING ADDITION TO RS. 3,885/- AGA INST ADDITION OF RS. 1,34,80,35/- MADE BY THE AO ON THE BASIS OF THE CLO SING STOCK FOUND DURING THE COURSE OF SURVEY. 3.2 DURING THE COURSE OF SURVEY, CERTAIN DOCUMENTS WERE FOUND. THE AO VIDE HIS LETTER DATED 18 TH DEC. 2008 INTIMATED THE ASSESSEE THE FINDING WHICH HE IS GOING TO ADOPT ON THE LOOSE PAPERS FOUND DUR ING THE COURSE OF SURVEY. THE AO HAS REFERRED TO DIFFERENT LOOSE PAPERS AT PA GES 18 TO 23 OF THE ASSESSMENT ORDER. 15 S.N. PAGE NO. & ANNEXURE AMOUNT 1. PAGE NO.8 ANNEXURE 7 3,20,805 2. PAGE NO. 30 & 31ANNEXURE 8 17,29,320 3. PAGE NO. 51 ANNEXURE 8 7,14,959 4. PAGE NO. 41 ANNEXURE 8 7,20,625 5. PAGE NO.40 ANNEXURE 8 19,625 6. PAGE NO. 13 ANNEXURE 8 82,735 7. PAGE NO. 12 ANNEXURE 8 43,280 8. ANNEXURE 22,23 & 24 75,00,000 9. ANNEXURE A 53 2,84,314 10. ANNEXURE A-49 2,26,819 11. PAGE NO. 21 ANNEXURE A-49 12,695 12. PAGE NO. 24 ANNEXURE A-49 3,00,592 13. PAGE NO.58-60 ANNEXURE A45 15,00,000 14 PAGE NO. 26 ANNEXURE A59 20,693 15. PAGE NO16-18 ANNEXURE A12 3,982 3.3 BEFORE THE LD. CIT(A), IT WAS SUBMITTED THAT TH E AO HAS ESTIMATED THE INCOME/ EXPENDITURE ON THE BASIS OF CERTAIN LOOSE P APERS. SUCH ADDITION HAS BEEN MADE WITHOUT UNDERSTANDING THE NATURE OF THESE PAPERS. THE MAJOR PAPERS IN THESE ANNEXURES ARE APPROVAL MEMOS OF GOO DS RECEIVED AND SEND AND PHYSICAL INVENTORY OF THE STOCK AT A PARTICULAR DATE. WHEN THE GOODS ARE APPROVED THEN THE SAME IS KEPT/ RETURNED BACK/ DELI VERED/ TAKEN BACK AS THE CASE MAY BE. NUMBER OF SUCH APPROVAL MEMOS RELATED TO THE YEAR 2003. THE AO ESTIMATED THE QUANTUM INVOLVED IN THESE LOOSE PA PERS AND MADE THE ADDITION. NO ADDITION CAN BE MADE ON THE BASIS OF S UCH APPROVAL MEMOS. THE PROFIT EARNED ON THE BASIS OF THESE APPROVAL MEMOS GET INVESTED IN STOCK AND 16 SUCH EXCESS STOCK HAS BEEN OFFERED TO TAX. HENCE, N O SEPARATE ADDITION IS REQUIRED TO BE MADE ON THE BASIS OF SUCH LOOSE PAPE RS. 3.4 THE LD. CIT(A) AFTER CONSIDERING THE SUBMISSION S OF THE ASSESSEE HAS RECORDED THE DETAILED FINDING WITH REFERENCE TO EAC H PAPER AT PAGES 14 TO 21 AND SUSTAINED THE ADDITION TO RS. 3,885/- BY GIVING FOLLOWING FINDINGS AT PAGE 21 AND 22 OF HIS ORDER. IT HAVE HELD THAT ON THE BASIS OF THESE PAPERS THE UNACCOUNTED SALES WORKS OUT AT RS. 24,07,995/- AND UNEXPLAINED EXPENDITURE AT RS. 3,885/-. SO FAR AS UNEXPLAINED EXPENDITURE OF RS. 3 ,885/- IS CONCERNED, SINCE THE ASSESSEE HAS FAILED TO EXPLAIN THE SOURCE OF THE SAME, THE SAME IS CONFIRMED. IN RESPECT OF UNACCOUNTED SALES, AS HELD IN VARIOUS CASES INCLUDING DECISION OF MP HIGH COURT IN CASE OF MOHA N SODANI VS. CIT 304 ITR 52, ENTIRE SALE PROCEEDS CANNOT BE ADDED BU T ONLY PROFIT SHOULD BE CONSIDERED ON THE SAME. RESPECTFULLY, FOLLOWING THE SAME, I ESTIMATE THE PROFIT @ 19% ON SUCH SALE OF RS. 24,07,995/-. THE G P RATE OF 19% IS ADOPTED AFTER CONSIDERING THE GP RATE DECLARED BY T HE ASSESSEE DURING THE YEAR. ON THIS BASIS THE PROFIT ON THE UNACCOUNTED S ALES WORKS OUT TO RS. 4,57,519/-. HOWEVER, SINCE ASSESSEE HAS ALREADY OFF ERED RS. 1.35 CRORES IN FORM OF EXCESS STOCK AND I HAVE SEPARATELY CONFIRME D ADDITION OF RS. 3,885/- ON ACCOUNT OF UNEXPLAINED EXPENDITURE, SET OFF OF SUCH INCOME NEEDS TO BE CONSIDERED TOWARDS SUCH UNEXPLAINED STO CK / EXPENDITURE. THEREFORE, NO SEPARATE ADDITION ON ACCOUNT OF PROFI T IN RESPECT OF UNRECORDED SALES IS CALLED FOR. IN THE RESULT THE A DDITION MADE BY THE A O ON THE BASIS OF LOOSE PAPER IS RESTRICTED TO RS. 3, 885/- AS DISCUSSED ABOVE, AND THE REMAINING ADDITION IS DELETED. 17 3.5 THE LD. AR IN HIS WRITTEN SUBMISSIONS HAS GIVEN THE CHART CONTAINING THE ANNEXURE NOS. AMOUNT, REASON GIVEN BY THE AO , EXPLANATION OF THE ASSESSEE AND FINDING OF THE LD. CIT(A). IT WILL BE USEFUL TO REPRODUCE SUCH CHART TO APPRECIATE THE ISSUE BEFORE US. THE EXPLANATION IN RESPECT OF INDIVIDUAL PAPER/ A NNEXURE FOR WHICH ADDITION IS MADE BY AO ARE AS UNDER:- ANNEXUR E NO AMOUNT REASON GIVEN BY AO EXPLANATION OF THE ASSESSEE / FINDINGS OF CIT (A) ANNEXURE 7 PAGE NO 8 A O PAGE 18 CIT (A) PAGE 14- 15 3,20,805/- GOODS SENT ON APPROVAL. ADDITION TO BE MADE FOR UNACCOUNTED STOCK. ON PERUSAL OF ANNEXURE -7 IT CAN BE NOTED THAT THIS ANNEXURE CONTAINS WORKING OF GOODS RECEIVED/ SENT ON APPROVAL OR CALCULATION OF THE GOODS. THERE IS N O EVIDENCE ON RECORD THAT GOODS SENT ON APPROVAL IS LYING WITH SOME OTHER PERSONS. THE CIT (A) HAS ACCEPTED THIS CONTENTION OF THE ASSESSEE AS THERE I S NO MATERIAL TO HOLD THAT GOODS ARE LYING WITH THIRD PARTY. BUT AT THE SAME TIME HE HELD THAT THESE GOOD S REPRESENT THE UNACCOUNTED SALE OF THE ASSESSEE ON WHICH HE ESTIMATED PROFIT ON SALE. THEREFORE ADDITION IS RIGHTLY DELETED BY CIT (A). ANNEXURE 8 PG NO. 30 & 31 A O PAGE 18-19 CIT (A) PAGE 15 17,29,320/- AMOUNT RECEIVED FROM KAMLESH & CO IN CASH, TREATED AS UNEXPLAINED INCOME U/S 69 THE PAPER IS A LEDGER ACCOUNT OF THE ASSESSEE IN BOOKS OF KAMLESH & COMPANY (PB 43-44) . THE OPENING BALANCE IN THIS ACCOUNT IS RS.17,29,320/- REPRESENTING THE AMOUNT DUE TO THE ASSESSEE FROM THIS CONCERN. THIS AMOUNT IS REALIZED DURING THE YE AR AS NOTED IN THE LEDGER. THUS IN FACT THE PAPER SHOW S THAT ASSESSEE HAS REALIZED THIS AMOUNT OUT OF THE OPENING AMOUNT DUE TO THE PARTY. THUS THIS AMOUNT IS AVAILABLE AS A SOURCE FOR THE ASSESSEE FOR MAKIN G INVESTMENT IN THE STOCK WHICH IS FOUND IN EXCESS. THE AO HAS WRONGLY INVOKED SECTION 69 AS DURING THEY YEAR THERE IS NO INVESTMENT RATHER IT IS A CAS E OF REALIZATION OF INVESTMENT. HENCE NO ADDITION FOR TH IS AMOUNT CAN BE MADE DURING THE YEAR RATHER IT BECOMES THE SOURCE FOR MAKING THE INVESTMENT IN THE STOCK WHICH IS FOUND IN COURSE OF SEARCH AND OFFERE D IN THE RETURN AND THEREFORE THE ADDITION FOR UNEXPLAINED STOCK SHOULD BE REDUCED BY THIS AMOUNT RATHER FOR MAKING ADDITION FOR THE SAME. IN THESE 18 FACTS CIT (A) HAS RIGHTLY DELETED THE ADDITION. ANNEXURE 8 PG NO. 51 A O PAGE 19 CIT (A) PAGE 15- 16 7,14,959/- GOODS SENT ON APPROVAL, TREATED AS UNACCOUNTED STOCK . ON PERUSAL OF ANNEXURE -8 IT CAN BE NOTED THAT THIS ANNEXURE CONTAINS WORKING OF GOODS RECEIVED/ SENT ON APPROVAL OR CALCULATION OF THE GOODS. THERE IS N O EVIDENCE ON RECORD THAT GOODS SENT ON APPROVAL IS LYING WITH SOME OTHER PERSONS. THE CIT (A) HAS ACCEPTED THIS CONTENTION OF THE ASSESSEE AS THERE I S NO MATERIAL TO HOLD THAT GOODS ARE LYING WITH THIRD PARTY. BUT AT THE SAME TIME HE HELD THAT THESE GOOD S REPRESENT THE UNACCOUNTED SALE OF THE ASSESSEE ON WHICH HE ESTIMATED PROFIT ON SALE. THEREFORE ADDITI ON IS RIGHTLY DELETED BY CIT (A). ANNEXURE 8 PG NO. 49 AO PAGE 19 CIT (A) PAGE 16 7,20,625/- GOODS SENT ON APPROVAL, TREATED AS UNACCOUNTED STOCK THIS PAPER IS DATED 23-04-2005 (PB 45) . IT ONLY CONTAIN A CALCULATION. NEITHER THE NAME NOR SIGNATU RE OF ANY PERSON IS APPEARING. IT IS NOT AN APPROVAL MEMO. HAD IT BEEN AN APPROVAL MEMO OF GOODS GIVEN IT WOULD HAVE BEEN ON PREPRINTED SERIAL NUMBER APPROVAL MEMO NOTE BOOK AS IS FOUND AND IMPUGNED IN SURVEY. IT IS ONLY A ROUGH CALCULATION AND A DEAF AND DUMB DOCUMENT. ON THE BASIS OF SUCH ROUGH CALCULATION NO PRESUMPTION OF INCOME/INVESTMENT CAN BE MADE. CONSIDERING THIS FACTUAL ASPECT, CIT (A) HAS RIGHTLY DELETED THE ADDITION BY RELYING ON TWO JUDGMENTS MENTIONED IN THE ORDER. ANNEXURE 8 PG NO. 40 A O 19 CIT (A) 16-17 19,625/- DRAFT SENT TO URMILA PANDEY SOURCE NOT EXPLAINED, TREATED AS DEEMED INCOME U/S 69 THIS IS THE DD RECEIVED AGAINST REGULAR SALES MADE VIDE SALE MEMO NO.469 DATED 6-06-2005. COPY OF THE LEDGER ACCOUNT OF URMILA PANDAY IS ENCLOSED (PB 46) . THUS IS A RECORDED TRANSACTION. CONSIDERING THIS FACTUAL ASPECT, THE CIT (A) HAS RIGHTLY DELETED THE ADDITION. ANNEXURE 8 PG NO. 13 A O PAGE 19 CIT (A) PAGE 17 82,735/- GOODS SENT ON APPROVAL, TREATED AS UNACCOUNTED STOCK. THE PAPER IS DATED 17-08-2005 (PB 47) . THE PAPER SHOWS THE DETAILS OF GOODS FOR RS.43,280/- ONLY AFT ER RETURN OF ONE ITEM OF RS.39,455/-. THUS THE AMOUNT AS PER THIS PAPER IS NOT RS.82,735/- BUT ONLY RS.43,280/-. THE ITEM WISE DETAILS OF THIS AMOUNT O F RS.42,380/- IS AGAIN NOTED ON PAGE 12 OF THIS ANNEXURE AGAINST WHICH RS.41,000/- IS REALIZED. THU S IN EFFECT THE PAPERS INDICATE SALE OF THE GOODS FOR RS.43,280/- ON WHICH ONLY AN ADDITION FOR GROSS PROFIT CAN BE MADE. THIS ADDITION IS ALSO NOT REQUI RED AS THE SAME WAS INVESTED IN THE STOCK FOUND IN EXCESS IN SURVEY AND OFFERED FOR TAX. THE CIT (A), CONSIDERING THIS FACTUAL POSITION, HAS RIGHTLY DELE TED THE ADDITION AND CONSIDERED IT FOR DETERMINATION OF PROFIT ON SALE. 19 ANNEXURE 8 PG NO. 12, A O 19 43,280/- CIT (A) 17 GOODS SENT ON APPROVAL, TREATED AS UNACCOUNTED STOCK. THE AMOUNT OF RS.43,280/- ON THIS PAGE IS COVERED BY PAGE 13 OF ANNEXURE 8 ABOVE (PB 48) . HENCE CIT (A) RIGHTLY DELETED THE ADDITION. ANNEXURE 22, 23 & 24 A O PAGE 19-20 CIT (A) PAGE 17- 18 75 LACS ESTIMATED COST OF GOODS SENT FOR DISPLAY, ADDED AS UNACCOUNTED STOCK ANNEXURE 22, 23 & 24 ARE APPROVAL MEMO IN RESPECT OF GOODS TAKEN FROM THE SHOW ROOM BY THE STAFF OR THE PARTNERS OF THE FIRM FOR EXHIBITION OR MARKETIN G TO OTHER PLACES. ON THIS ANNEXURE ONLY NAME OF THE ITEM AND WEIGHT IS NOTED. RATE IS NOT MENTIONED. THESE ARE PREPARED FOR CARRYING THE GOODS TO OTHER PLACES AND NOT FOR GIVING IT TO THE BUYERS FOR APPROVAL. THE ANALYSIS OF THESE ANNEXURE WOULD FURTHER SHOW THAT ONLY FEW OF THE APPROVAL MEMO PERTAINS TO THE YEAR UNDER CONSIDERATION (PB 78) . THERE IS NO BASIS OF THE AO TO ESTIMATE THE VALUE OF THE GOODS AT RS. 75 LACS. IN FACT ON PAGE 18 TO 39 OF ANNEXURE A-22 WHICH ARE DATED 10/11-08-2005 IT IS SPECIFICALLY MENTIONED THAT THE GOODS ARE GIVEN TO SHRI NARENDRA LAKHI PARTNER FOR EXHIBITION AT HYDERABAD. THEREFORE, ON THE BASIS OF THIS APPROVAL MEMO NO INCOME/INVESTMENT CAN BE ESTIMATED. EVEN THOUGH THERE IS NO RATE MENTIONED ON THESE APPROVAL MEMO, IF A REASONABLE RATE IS APPLIED, THE VALUE OF GOODS FOR THE YEAR UNDER CONSIDERATION AS PER THESE APPROVAL MEMO WORKS OUT AS UNDER (PB 79) :- ANNEXURE AMOUNT 22 6,32,430/- 23 67,058/- 24 50,972/- TOTAL 7,50,460/- HENCE THE ADDITION OF RS.75,00,000/- MADE BY THE AO IS HIGHLY ARBITRARY, UNREASONABLE AND WITHOUT BASIS. CONSIDERING THE ABOVE FACTUAL ASPECT, CIT (A) ESTIMATED THE VALUE OF GOODS AS PER THESE APPROVAL MEMO AT RS. 10 LACS WHICH WAS CONSIDERED FOR APPLICATION OF A REASONABLE GP RATE AND THEREFORE ADDITION OF RS. 75 LAC MADE BY THE A O IS RIGHTLY DELETED BY HIM. ANNEXURE A-53 A O PAGE 2,84,314/- AMOUNT AS PER PRETTY CASH BOOK ADDED U/S 68. THIS IS A MEMORANDUM CASH BOOK MAINTAINED BY THE STAFF FOR THE PERIOD 07-01-05 TO 28-06-2005. IN THI S MEMORANDUM BOOK IN THE CREDIT SIDE THE PAYMENT 20 20-21 CIT (A) PAGE 19 RECEIVED IS NOTED AND IN THE DEBIT SIDE THE PAYMENT MADE FOR THE PURCHASE/EXPENSES ARE NOTED. THE BALANCE ON 28-06-2005 AS PER THIS BOOK IS RS. 8,315/- (PB 58). THE AO TREATED THE ENTIRE RECEIPT AS UNEXPLAINED WHEREAS, THIS IS ONLY AN INTERMEDIARY TRANSACTION. OTHERWISE ALSO, AFTER CONSIDERING THE EXPENSES, THE BALANCE ON 28-06-2005 IS ONLY RS.8,315/- WHEREAS THE BALANCE ON 01-04-2005 WAS RS.4039/-. CONSIDERING THIS FACTUAL ASPECT, CIT (A) HAS RIGHTLY DELETED THE ADDITION. ANNEXURE A-49 A O PAGE 21 CIT (A) PAGE 19 2,26,810/- UNEXPLAINED EXPENDITURE ADDED U/S 69 C ON PROTECTIVE BASIS. THIS IS THE DETAILS OF THE TRAVELLING EXPENSES INCU RRED MENTIONED AT PAGE NO.12 OF ANNEXURE A-49. AS PER THIS PAPER TOTAL EXPENDITURE INCURRED ON TRAVELLING IS RS.2,26,208/-. OUT OF THIS A SUM OF RS.1,96,753/- I S DULY RECORDED IN THE REGULAR BOOKS OF LAKHI GEMS. COPY OF THE RELEVANT PAGES OF THE LEDGER ACCOUNT OF BOOKS IS ENCLOSED (PB 32-36) . THE BALANCE AMOUNT OF RS.29,455/- (13646/- + 15809) WAS PERSONAL EXPENDITURE OF THE PARTNERS AND BORN BY THEM. THE CIT (A) HAS CONSIDERED THIS PAPER ON SUBSTANTIVE BASIS IN CASE OF M/S. LAKHI GEMS AND THEREFORE RIGHTLY DELETED THE PROTECTIVE ADDITION FROM THE HANDS OF THE ASSESSEE. ANNEXURE A 49 PG NO 21 A O 21 CIT (A) 19-20 12,695/- UNEXPLAINED EXPENDITURE ADDED U/S 69 C. THIS PAPER IS THE DETAILS OF THE PRINTING EXPENSES OF RS.12,695/-. OUT OF THIS EXPENSES OF RS.8810/- (400 0 + 270 + 1740 + 2800) IS DULY RECORDED IN THE BOOKS. ( PB 69-71 ) THE BALANCE AMOUNT OF RS.3885/- IS NOT VERIFIABLE. THE CIT (A) HAS THEREFORE RIGHTLY RESTRICTED THE ADDITION TO RS. 3,885/-. ANNEXURE A 49 PG NO. 24 A O PAGE 21-22 CIT (A) PAGE 20 3,00,592/- UNEXPLAINED EXPENDITURE ADDED U/S 69 C. THIS IS THE APPROVAL MEMO OF THE GOODS RECEIVED FROM ARMILA GEMS ON 10-08-2005 FOR RS.3,00,591/-. THESE GOODS WAS RETURNED BACK ON 17-08-2005 AS PER THE COPY OF THE APPROVAL RETURN MEMO ENCLOSED (PB 72-73) . HENCE ON THE BASIS OF THIS APPROVAL MEMO, NO SEPARATE ADDITION CAN BE MADE AS EXCESS STOCK IS ALREADY TAXED. IN THESE CIRCUMSTANCES, CIT (A) HAS RIGHTLY DELETED THE ADDITION. ANNEXURE A 45 PG NO. 58-60 A O PAGE 22 CIT (A) PAGE 20- 15 LACS SALE ON APPROVAL TREATED AS INCOME THESE PAPERS CONTAIN THE LIST OF GOODS GIVEN TO THE STAFF FOR DISPLAY IN THE MUMBAI (PB 74-76) . OUT OF 110 ITEMS NOTED ON THESE PAPERS, ONLY 9 ITEMS COULD BE SOLD AND THE BALANCE WERE RETURNED BACK AND INCLUDED IN THE STOCK. THE VALUE OF THE 9 ITEMS WHI CH ARE SOLD IS APPROXIMATELY RS.14,464/-. THE CIT (A) CONSIDERIN THIS FACTUAL ASPECT HAS ESTIMATED THE SA LE VALUE OF THESE ITEMS AT RS. 50,000/- FOR ESTIMATION OF THE PROFIT AND RIGHTLY DELETED THE ADDITION OF RS. 15 21 21 LACS MADE BY THE A O. ANNEXURE A-59 PG NO. 26 A O 23 CIT (A) PAGE 21 20,693/- UNACCOUNTED CASH SALES THIS REPRESENTS SALE OF THE GOODS FOR RS.17,657/- O N 03-08-05 (PB 77) . THE AO MADE THE ADDITION FOR THE ENTIRE AMOUNT WHEREAS ONLY PROFIT ON THE SALE SHOUL D BE ADDED. THE CIT (A) HAS THEREFORE RIGHTLY CONSIDERED RS. 17,657/- FOR ESTIMATING PROFIT ON SU CH SALES AND DELETING THE ADDITION OF RS. 20,693/-. ANNEXURE A-12 PG NO. 16-18 A O 23 3,982/- CIT (A) PAGE 21 UNACCOUNTED CASH SALES THE AO HAS ADDED ENTIRE SALE IN THE INCOME WHEREAS ONLY PROFIT NEEDS TO BE ESTIMATED. THE CIT (A) THEREFORE RIGHTLY CONSIDERED THIS AMOUNT FOR DETERMINATION OF PROFIT ON SALE. TOTAL 1,34,80,435 3.6 WE HAVE HEARD BOTH THE PARTIES ON THIS ISSUE. W E HAVE PERUSED THE FINDINGS OF THE LD. CIT(A) IN RESPECT OF EACH ANNEX URE.. 3.7 PAGE NO.8 OF ANNEXURE 7: A.O. HAS MENTIONED THE ADMISSION THAT IT IS GOODS SENT FOR APPROVAL. BEFORE CIT (A). IT IS STATED THAT THERE ARE NO GOODS FOR APPROVAL. LD. CIT (A) HAS CONSIDERED T HE DETAILS AS SALES AND HAS SEPARATELY CONSIDERED FOR SALES. THE PAPER BOOK CONTAINS THE COPY OF SUBMISSIONS FILED BEFORE LD. CIT (A) AT PAGES A1 TO A20. AT PAGE A-6, IT IS MENTIONED THAT THIS PAPER IS MISSING. IN REPLY TO A .O. IT WAS MENTIONED THAT IT CONTAINS THE DETAILS OF GOODS SENT ON APPROVAL. SOME OF THEM HAVE BEEN RETURNED BACK AND SOME HAVE BEEN BOOKED AS SALE. AT THE TIME OF SURVEY, IT WAS STATED BY THE PARTNER THAT LOOSE PAPERS WILL BE GET VERIFIED SUBSEQUENTLY. WE ARE NOT HAVING THE BENEFIT OF PERUSING THIS PAGE OF ANNEXURE 7. WE ARE ALSO NOT AWARE ABOUT THE DATE TO WHICH SUCH PAGE RE LATES. THE ASSESSEE SHOULD HAVE PRESERVED SUCH PAGE OR THE REVENUE SHOU LD HAVE EITHER 22 IMPOUNDED IT OR SHOULD HAVE OBTAINED THE COPY AT TH E TIME OF SURVEY. LOOKING TO THE FACT THAT QUANTUM IS UNDISPUTED; WE FEEL THAT LD. CIT (A) HAS DRAWN A RIGHT CONCLUSION. 3.8 PAGE NO. 30 & 31 OF ANNEXURE 8:- THIS IS LEDGER ACCOUNT OF THE ASSESSEE FIRM IN THE BOOKS OF ASSESSEE FOR THE PERI OD 1.4.2005 TO 15.4.2005. ENTRIES AT PAGE 31 ARE INCLUDED IN LEDGER ACCOUNT A T PAGES 30. SUCH PAGES ARE AVAILABLE AT PAGES 43 & 44 OF PAPER BOOK. IN THE BO OKS OF KAMLESH & CO., THE ASSESSEE WAS HAVING CREDIT BALANCE AS ON 1.4.20 05. IT MEANS THE ASSESSEE WAS TO RECEIVE PAYMENT OF RS.17,29,000/-. THE ASSES SEE HAS MADE CASH PAYMENTS AND SUCH PAYMENTS EXCEED RS.20,000/-. WE A RE NOT AWARE AS TO WHETHER ANY GOODS WERE SOLD OR LOAN WAS ADVANCED BE FORE 1.4.2005. HENCE THESE PAPERS ARE NOT RELEVANT FOR A.Y. 06-07 AS IT SHOWS RECEIPTS OF CASH AND SUCH CASH RECEIPT IS CONSIDERED TO BE INVESTED IN E XCESS STOCK. 3.9 PAGE NO.51 OF ANNEXURE 8: COPY OF THIS PAGE IS NOT ENCLOSED IN THE PAPER BOOK FILED BEFORE US. FINDING OF A.O. IS THE SAME AS GIVEN FOR PAGE 7 OF ANNEXURE 8 AND FINDING OF THE LD. CIT (A) IS THE SAME AS GIVEN FOR PAGE NO.7 OF ANNEXURE 8. IN THE WRITTEN SUBMISSIONS FILE D BEFORE LD. CIT (A), COPY OF WHICH IS AVAILABLE IN PAPER BOOK FILED BEFO RE US, IT IS MENTIONED THAT THIS PAGE IS MISSING. OUR FINDING IS THE SAME AS PE R FINDING GIVEN FOR PAGE NO.7 OF ANNEXURE 8. 23 3.10 PAGE NO.49 OF ANNEXURE 8: IT IS AVAILABLE AT P AGE 45 OF THE PAPER BOOK. IT CONTAINS SOME CALCULATION AND PAPER IS DAT ED 23.4.2005. AFTER PERUSING THE PAPER, WE FEEL THAT LD. CIT (A) HAS RI GHTLY DELETED THE ADDITION. 3.11 PAGE NO.40 OF ANNEXURE 8:-LEDGER ACCOUNT OF UR MILA PANDEY IS AVAILABLE AT PAGE 46 OF PAPER BOOK AND DRAFT IS FOU ND ENTERED. HENCE LD. CIT (A) JUSTIFIED IN DELETING THE ADDITION. 3.12 PAGE NO.13 OF ANNEXURE 8:- PAGE NO. 12 OF ANNE XURE 8 THESE ARE AVAILABLE AT PAGES 47 & 48 OF PAPER BOOK. DETAILS O N THESE PAPERS ARE AS UNDER: 30.35CT. @ 1300 RS.39955/- 20.75 CT @ 1175 RS.23616/- 34.90 CT @ 40 RS.1745/- 39.00 CT @ 80 RS.3120/- 39.00 CT @ 80 RS.3120/- 15.37 CT @ 350. RS.5399.50 -------------- RS.76495/- (-) RS.3120/- -------------- RS.73375/- 18.72 CT @ 500 RS.9360/- -------------- RS.82735/- (-) RS.39455/- -------------- RS.43280/- 3.13 PAGE 12 CONTAINS THE DETAILS OF RS.43280/- I.E . THE ITEMS WHICH HAS BEEN REDUCED PAGE 13 HAS NOT BEEN CONSIDERED. RS.41 ,000/- HAS BEEN TREATED 24 AS JAMA AND BALANCE RS.2000 LEFT. DATED MENTIONED I S 17.08.2005 I.E. JUST BEFORE THE SURVEY. HENCE BALANCE OF RS.2000 IS OUTS TANDING RECEIVABLE THUS RS.2000 IS TO BE ADDED. 3.14 ANNEXURE 22, 23 & 24, PAGE 79 OF PAPER BOOK CO NTAINS THE DETAILS OF ANNEXURE 22,23 & 24. WE ARE NOT HAVING THE BENEFIT OF PERUSING ANNEXURE 22,23 & 24. THE A.O. AT PAGES 10 & 20 OF THE ASSESS MENT ORDER HAS MENTIONED THAT THESE ANNEXURE CONTAIN APPROVAL MEMO S WITH SERIAL NUMBER. THERE IS NO EVIDENCE THAT SUCH APPROVAL MEMOS ARE F OR THE ITME3S TAKEN FOR EXHIBITION. NO EVIDENCES FILED. ONE HAS TO APPRECIA TE THE EVIDENCE ON THE BASIS OF HUMAN PROBABILITY. APPROVAL MEMOS FROM 601 TO 614 ARE FOR 04.01.2003 TO 17.08.2003. APPROVAL MEMOS NOT CO-REL ATED TO SPECIFIC EXHIBITION. RATE IS NOT MENTIONED. THE LD. CIT (A) AFTER CONSIDERING THE RATE OF WEIGHT ESTIMATED THE TURNOVER RELEVANT TO THE YE AR UNDER CONSIDERATION AT RS.10 LAKH. HENCE FINDING OF LD. CIT (A) IS UPHELD. 3.15 ANNEXURE A-53:- THIS ANNEXURE IS AVAILABLE AT PAGES 49 & 67 OF THE PAPER BOOK. IT CONTAINS ENTRIES FROM 7.1.2005 TO 26 .6.2005. AT PAGES 59 TO 67 OF PAPER BOOK CONTAINS ENTRIES AND LEDGER FOLIO IS ALSO MENTIONED. EXPLANATION BEFORE A.O. IS THAT IT IS PETTY CASH BO OK ENTRIES ARE CONSIDERED AS NORMAL. IT WILL BE USEFUL TO REPRODUCE ENTRIES O N 26/6 BALANCE 3314.8 + 50,000 25 BALANCE 8314.8 HERE ENTRIES MAY BE IN HUNDRED. LOOKING TO THE PERU SAL OF DOCUMENT, WE FEEL THAT A.O. WAS REASONABLE IN MAKING ADDITION OF RS.2 ,84,314/-. HENCE ON THIS ISSUE WE UPHOLD THE FINDING OF A.O. 3.16 ANNEXURE A-49 PAGE 12: IT IS AVAILABLE AT PAGE 68 OF THE PAPER BOOK. AS PER ASSESSEE, IT CONTAINS THE TRAVELING EXPENSES . BEFORE THE A.O. IT IS STATED THAT TRAVELING RS.1,94,567/- IS RECORDED IN THE REGULAR BOOKS OF LAKHI GEMS. THERE IS NO MENTION AS TO WHOM SUCH PAPER REL ATES. A.O. HAS NOT COLLECTED ANY MATERIAL TO REBUT THE CONTENTION THAT PAPER BELONGS TO LAKHI GEMS. THE A.O. HAS NOT ASKED THE ASSESSEE TO FILE E VIDENCE THAT TRAVELING INCLUDED ARE NOT THOSE TRAVELING WHICH ARE DEBITED IN THE BOOKS OF M/S. LAKHI GEMS. A.O. COULD HAVE EXAMINED THE PERSONS IN WHOSE NAME TRAVELING EXPENSES HAVE BEEN DEBITED. WE THEREFORE UPHELD THE FINDING OF LD. CIT (A). 3.17 PAGE NO.21 OF ANNEXURE A-49.:- PAGE NO.21 OF A NNEXURE A-49 IS AVAILABLE AT PAGE 69 OF PAPER BOOK AND IT WAS FOUND FROM THE PREMISES OF KHUSHBOO JEWELLERS. PAGE NO.70 IS LEDGER COPY. PAGE NO.21 CONTAINS BALANCE PAYMENT OF RS.3885 AND RS.8810. RS.8810 IS IN RESPECT OF FIVE BILLS AND DETAILS ARE AVAILABLE AND TALLY WITH THE DETAIL S IN LEDGER ACCOUNT. IN RESPECT OF RS.3885, THE ENTRIES ARE 26 BALANCE RS.7885 CASH BY GOPAL 2000 CASH BY 2000 BALANCE RS.3885 SINCE RS.8,810 /-IS VERIFIABLE FROM REGULAR BOOKS A ND HENCE THE LD. CIT (A) WAS JUSTIFIED IN UPHOLDING THE ADDITION OF RS.3,885 /- 3.18 PAGE NO.24 OF ANNEXURE A-49: THIS IS AVAILABL E AT PAGE 72 OF PAPER BOOK. THIS IS LETTER DATED 10.8.2005 ON THE LETTERS HEAD OF ARMILA GEMS FOR SENDING GOLD STUDDED JEWELLERY WEIGHING 1003.06 GEM S AT RS.275 PER GRAM FOR RS.3,00,591.5. PAGE 73 IS APPROVAL RETURN MEMO DATED 17.8.2005. AT THE TIME OF SURVEY IT WAS STATED THAT GOODS ARE LYING A T THE PREMISES. THE A.O. HAS NOT REFERRED IN HIS ORDER AS ABOUT APPROVAL RET URN MEMO. PAGE NO.16 OF PAPER BOOK CONTAINS THE REPLY OF THE ASSESSEE BEFOR E A.O. AND THERE IS NO REFERENCE OF RETURNED APPROVAL MEMO. IT MEANS ADDIT IONAL EVIDENCE HAS BEEN FILED BEFORE LD. CIT (A) HENCE SUCH EVIDENCE IS TO BE DISCARDED. WE HOLD THAT GOODS WERE PURCHASED AND THEREFORE THE A.O. WAS JUS TIFIED IN ADDING A SUM OF RS.3.00,591/- U/S 69 C OF I.T.ACT. THE CONCERN M /S. ARMILA GEMS HAS BEEN HELD AS PROVIDING BOGUS BILLS IN THE CASE OF C HANCHAL LAKHI FOR THE ASSESSMENT YEAR 2006-07. 3.19 PAGE NO.58 TO 60 OF ANNEXURE A-45: THESE ARE A VAILABLE AT PAGES 74 TO 76 OF PAPER BOOK. PAGE 58 OF ANNEXURE A-45 IS DA TED 5.5.2005 AND ON TOP IT IS MENTIONED AS FOR MUMBAI MARKET . AGAINST 3 ITEMS, THE WORK SOLD IS 27 MENTIONED WHILE THE NO. OF ITEMS OF WHICH ENTRIES A RE THERE ON THIS PAPER ARE 36. THE LD. CIT (A) HAS DRAWN A RIGHT CONCLUSION AN D THE SAME IS UPHELD. 3.20 PAGE 59 IS AVAILABLE AT PAGE 75 OF PAPER BOOK AND IS DATED 3.8.2005. IT CONTAINS THE ITEMS, WEIGHT AND AMOUNT. AGAINST TOTA L VALUE OF ALL ITEMS OF RS.20693.75, THE ASSESSEE RECEIVED RS.15,000 IN CAS H-BALANCE AND AMOUNT DUE IS RS.5693.75. WE THEREFORE FEEL THAT SUM OF RS .5693.75 IS OUTSTANDING DEBT NOT INCLUDED IN THE STOCK. HENCE IN ADDITION TO PROFIT, A SUM OF RS.5693.75 IS ALSO TO BE ADDED. HENCE ADDITION OF R S.5693.75 WILL BE FURTHER ADDED TO THE INCOME UPHELD BY LD. CIT (A). 3.21. PAGES 16 TO 18 OF ANNEXURE A-12: COPY THIS AN NEXURE HAS NOT BEEN FILED. ON THESE PAPERS, THE A.O. HAS ADDED RS.3982 WHILE THE LD. CIT (A) HAS DIRECTED TO CONSIDER THE SAME FOR PROFIT. WE UPHOLD THE FINDING OF LD. CIT (A). 4.1 THE THIRD GRIEVANCE OF THE REVENUE IS THAT LD. CIT (A) HAS DELETED THE TRADING ADDITION OF RS.4,88,290/- IN RESPECT OF NON -VERIFIABLE PURCHASES. 4.2 THE ASSESSEE MADE PURCHASES FROM SEVEN PARTIES AND SUCH SEVEN PARTIES HAVE BEEN NOTICED BY THE REVENUE THAT SUCH CONCERNS WERE ISSUING BOGUS BILLS. ACCORDINGLY THE A.O. MADE TRADING ADDI TION WHICH WAS 25% OF UNVERIFIABLE PURCHASES. 28 4.3 WE HAVE HEARD BOTH THE PARTIES. THIS ISSUE HAS BEEN CONSIDERED BY THE JAIPUR BENCH IN A NUMBER OF CASES. THE BOOKS OF ACC OUNT ARE TO BE REJECTED. THE GROSS PROFIT SHOWN IS BETTER AS COMPARED TO PRE CEDING YEAR. THE PARTIES WHO WERE ISSUING BOGUS BILLS WERE CHARGING COMMISSI ON TO THE EXTENT OF 0.2% TO 0.5%. THE QUANTUM OF NON VERIFIABLE PURCHAS ES ARE OF RS.19,53,161/-. LOOKING TO THE QUANTUM OF NON VERIF IABLE PURCHASES, THE TRADING ADDITION ON ACCOUNT OF SUCH PURCHASES IS TO BE MADE AT RS.20,000/- 5. IN THE RESULT, THE APPEAL OF THE REVENUE IS PART LY ALLOWED. THE ORDER IS PRONOUNCED IN THE OPEN COURT ON 16-09 -2011. SD/- SD/- (R.K. GUPTA) (N.L. KALRA) JUDICIAL MEMBER ACCOUNTANT MEMBER JAIPUR DATED; 16/09/2011 *MISHRA COPY FORWARDED TO :- 1. THE ACIT, CIRCLE- 1, JAIPUR 2. M/S. BIHARI LAL HOLA RAM, JAIPUR 3. THE LD. CIT BY ORDER 4. THE LD. CIT(A) 5. THE LD.DR 6. THE GUARD FILE (ITA NO.827/JP /10) A.R, ITAT, JAIPUR 29 30 31