No disallowance for purchase of old Gold from customer against sale of new ornaments

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...