2008 (6) TMI 364

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....al by deleting the additions made by the Assessing Officer relying on the decision of the Customs, Excise, Service Tax Appellate Tribunal ?"   2. The brief facts are as follows :    The assessee is a partnership firm consisting of two partners, which is engaged in the business of purchasing gold bullion and converting the same into ornaments and the converted ornaments are exported toSingaporeandDubai. The assessee has filed a return of income onFebruary 10, 2002admitting the total income of Rs. 47,060. The same was accepted under section 143(1) of the Income-tax Act, 1961. Subsequently, a notice datedJanuary 22, 2003under section 148 of the Act was issued to reopen the assessment. The assessee has sent a reply datedJan....

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....d the contention of the Revenue and confirmed the order of the Commissioner of Income-tax (Appeals)-X, Chennai. Challenging the said order the Revenue filed the above appeal.   4. Learned counsel appearing for the Revenue submitted that the authorities below are wrong in deleting the additions, made by the Assessing Officer. The Assessing Officer has made additions on the basis of the finding given by the Central excise authority. These findings are based on valid materials. Therefore, the learned counsel has submitted that the order passed by the Tribunal deleting the additions is not in accordance with law and the same has to be set aside.   5. Heard the counsel for the Revenue. There was a raid in the business premises of....

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....ground to hold that the jewellery found in the shop was made out of smuggled gold. Such finding should be supported by concrete evidence which is totally absent in the present case. Even if some of the gold jewellery meant for export has been displayed in the jewellery, that cannot be reason to order confiscation of the same. We are against the way in which search has been made in the jewellery shop as in the present case. It is reminiscent of a situation when the Gold (Control) Act was in existence. It seems that the DRI officers were ignorant of the fact that Gold (Control) Act, has been repealed as far back as in 1990. Even if there was reasonable belief that smuggled gold has been kept, the basis for entertaining such reasonable belief ....