2007 (10) TMI 334

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....ties in view of orders of the lower authorities and the decisions relied upon by them. 3. The relevant facts are that the Department had conducted search at the premises of assessee and in consequence thereof the assessee had filed block return for the period 1st April, 1990 to 29th March, 2001 declaring undisclosed income at Rs. 98,54,725. The Assessing Officer assessed undisclosed income at Rs. 1,80,44,880 by making addition of Rs. 81,90,151. The addition has been finally sustained at Rs. 5,04,098 by the Tribunal, the break-up of which is as under : 1. On account of stock 2,00,000 2. On account of bank balance 44,421 3. On account of gold jewellery 57,377 4. On account of silver articles 16 5. ....

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....nsal 31 TW 49 (Jp). 5. Considering these aspects of matter the learned CIT(A) has deleted the, penalty on the basis that the finally sustained addition is based upon estimation and AO has failed to establish that assessee has deliberately concealed particulars of income. 6. Before the Tribunal the learned Departmental Representative in support of the ground has justified the penalty order whereas first appellate order and the decisions cited before the learned CIT(A) on behalf of the assessee have been reiterated by the learned Authorised Representative. 7. Considering the above submissions in view of the orders of the lower authorities, we find that the Assessing Officer had computed the tax @ 60 per cent on the finally sustained ....

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....de in the account. However, while considering the claim of assessee for the defective and damaged goods returned back worth Rs. 1,30,13,008, Assessing Officer had allowed this claim only on the basis of seized documents for the period of 44.5 months at Rs. 37,58,941. The learned CIT(A) has further allowed the relief on account of defective and damaged goods @ 3 per cent on the basis of seized, documents showing sales of Rs. 18,77,802. The Tribunal considering the facts and circumstances of the case has estimated the return of defective and damaged goods at Rs. 1,10,81,250. The finally sustained addition on account of trade debtors at Rs. 2,02,284 is thus based on estimation. Regarding addition of Rs. 44,421 on account of bank balance, the e....