DCIT Vs Kalanikethan Silks Private Limited (ITAT Hyderabad)
As regards, the purchase of old gold, the assessee had filed the copies of the vouchers which are properly bound and preserved and it is submitted that is the normal practice of the customers to bring old gold and buy new ornaments and in that process, the value of the old gold would be reduced from the entire cost of the new ornaments. It was submitted that in such transactions, there is no cash payment, but it was only an adjustment of old gold ornaments against the purchase of new ornaments.
FULL TEXT OF THE ITAT JUDGMENT
This is Revenue’s appeal for the A.Y 2013-14 against the order of the CIT (A)-2, Hyderabad, dated 19.06.2017.
2. Brief facts of the case are that the assessee company, trading in textiles and jewellery, filed its return of income for the A.Y 2013-14 on 7.9.2013 admitting total income of Rs.7,18,02,940. During the assessment proceedings u/s 143(3) of the Act, the assessee was asked to produce its books of account. The assessee furnished the information as called for.
3 On verification of the same, the AO observed that for the following expenses, bills/vouchers are self-made and are not properly maintained:
