ITAT Upholds Addition as Unsupported Gold Deposit Agreements Failed to Explain Excess Stock

Smapath Raj Sunil Kumar Jain Vs DCIT (ITAT Hyderabad) The Income Tax Appellate Tribunal (ITAT), Hyderabad, dismissed the assessee’s appeal and upheld the addition of ₹3.75 crore made on account of unexplained excess stock of gold found during a survey under Section 133A of the Income-tax Act. The Tribunal held that unsupported gold deposit agreements produced after the survey, along with subsequent payment of interest to alleged depositors, were insufficient to explain the excess stock discovered during the survey. The assessee, proprietor of a jewellery business, was subjected to a su...