Jewellery deposited by family members of partner treated as stock in trade

Rajarathnam’s Jewels Vs ACIT (ITAT Bangalore) ITAT Bangalore held that the deposit of gold jewellery by family members of a partner in the partnership firm would be treated as the stock in trade of the firm as agreement between the firm and the partners provides that the jewellery given by the partner can be used by the firm and sold by the firm. Facts- There was a survey conducted under section 133A of the Act by the Revenue on 16.03.2001 in the business premises of the assessee. Accordingly, stock of 1358.73 gms of gold and diamond jewellery was found. It was explained that the gold and di...