ITAT directs to compute addition towards 2% of profit  on sale of silver by assessee found during Search proceedings [Read Order]

The Income Tax Appellate Tribunal (ITAT) Delhi  bench directed to compute addition towards 2% of profit on silver sold by assessee found during the course of search proceedings. The AO made additions under Section 69 of Income Tax Act, 1961 and he added an amount of Rs.2,89,300/-.

During the  search & seizure operations at the premises of the assessee  Anoop Kumar Soni, the department had seized some silver and also found certain documents regarding purchase of silver. 

Aggrieved by the order, the assessee filed an appeal before the commissioner of Income Tax (Appeals) [CIT(A)], who had upheld the addition. Thereafter  the assessee filed a second appeal before the tribunal.

Hiren Mehta, Counsel for the assessee submitted that  the silver was sold by the assessee. It was done during the business practice of assessee. 

P. Praveen Sidharth, the Counsel for the revenue supported the decision of the lower authorities.

The tribunal observed that if the silver was considered to be sold, the same ought to have been purchased by the assessee. Hence held that only the profit needed to be taxed.

After considering the facts and circumstances of the case and also the explanation of the assessee, the two member bench of  Saktijit Dey (Vice President) and Dr. B. R. R. Kumar (Accountant Member) directed the assessing officer to compute addition towards 2% of profit on sale of silver by the assessee found out during the course of search proceedings.

To Read the full text of the Order CLICK HERE

Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates