Nitin Vijay, Jaipur vs Ito Ward 1(4), Jaipur, Jaipur on 10 October, 2024
3.4.18 It is found from the copies of some of the purchase bills (details
mentioned in above table) that the total weight of gold bars purchased is
mentioned as 1000.000 Grams, 1546.470 grams etc. however the total number of
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ITA No. 12/JP/2024
Nitin Vijay vs. ITO
gold bars with their individual weight is not mentioned in the purchase bills. It is a
common knowledge that gold bar is a single piece of gold weighing in the range
of 100 grams, 500 grams, 1000 grams, etc. and thus gold in small weight less
than 100 grams is generally not termed as gold bar but it is in the nature of gold
coin. Therefore it is not known as to how many pieces of gold bars are purchased
by the appellant. Since as per the submission of the appellant he has received
advance from 112 persons, it is required that the appellant has to purchase at
least 112 gold bars considering that the appellant sales the gold bars only on
order basis and that the gold bars are sold in the same condition in which they
are purchased and no modification in such bars is done by the appellant. This is
required so that at least one gold bar can be supplied to each person giving cash
advance to the appellant. It is calculated from the purchase bills provided by the
appellant that the total number of gold bars purchased by the appellant is not
sufficient to supply it to 112 persons from whom cash advance is alleged to have
been taken. It is further to be noted that the appellant has alleged to have taken
cash advance of different amount from different persons then it is not
known/explained by the appellant as to how he was going to supply gold bars to
each individual of different weights especially considering that the appellant is
selling the gold bars as it is, as purchased by him and the weight of gold bar is of
fixed standard. Also the total weight of gold bar as per the bills provided by the
appellant do not show that the appellant has purchased at least 112 pieces of
gold bars so that the same can be supplied to the persons giving advance. It is
further noted that gold rate of 24 carat on 08.11.2016 in Rajasthan was in the
range of Rs. 3000/- per gram. Therefore wherever the appellant has received the
exact amount of cash advance of approximate Rs.3,00,000/- he can supply gold
bar of 100 grams to such person, but where the cash advance received do not
commensurate with the value of gold bar, the appellant will not be in a position to
supply gold bars to such persons Since he is not breaking the gold bar into pieces
of different weight for different customers accordingly to the amount of cash
advance received. Thus in respect of cash advance received is either of less or
more amount than the price of gold bar, the appellant cannot supply gold bar to
these persons The appellant has not provided any details or documentary
evidences showing the weight and number of gold bars ordered by each of the
112 persons. The appellant has also not provided any authentic documentary
evidences showing that proper receipt against cash advance is issued by the
appellant to the person giving cash advance.