TaxTMI 
TaxTMI 
2011 (1) TMI 786
X X X X Extracts X X X X
X X X X Extracts X X X X
....on of Rs.11,86,292/- made u/s.69 of the Act in respect of unaccounted www.lexpertsonline.com investment in stock of cloth under work-in-progress? [B] Whether the Appellate Tribunal is right in law and on facts in confirming the order passed by the CIT (A) deleting the addition of Rs.14,82,360/- made in respect of excess grey cloth?" 2. The Assessment Year is 1993-94 and the relevant accounting period is the financial year 01.04.1992 to 31.03.1993. 3. In relation to proposed question [A], during the course of search proceedings, the assessee had made disclosure of Rs.10 lakhs. However, in the return of income, it had offered Rs.4 lakhs under the head "income from other sources" declared in the search. At the time the ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....pt the figures enumerated by the assessee. According to the Commissioner (Appeals) the figures adopted by the Assessing Officer were not supported by either necessary evidences/material or contemporary records of the assessee and/or the Excise Lot Registers and therefore could not be accepted. He, therefore, held that the Assessing Officer was not justified in making the addition on account of unaccounted cloth in process, over and above the amount already disclosed by the assessee in the return of income and deleted the addition. 6. The Tribunal after appreciating the evidence on record, concurred with the findings of fact recorded by the Commissioner (Appeals), and was of the view that the assessee by various charts and reconcilia....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ounted stock of grey cloth, findings similar to those in respect of proposed question [A] have been recorded by both, the Commissioner (Appeals) as well as the Tribunal. The Tribunal has observed that the search party did not find any discrepancy in respect of unaccounted stock of grey cloth. The Tribunal noticed that the assessee had pointed out the names of parties who had supplied cloth, which was just delivered at the grey cloth godown; job charges income declared by the assessee had been accepted; parties who supplied cloth for job work were identifiable having regular relationship with the assesse; the version of the assessee was supported by other evidence like folding reports, bills etc. which had been duly considered by the Commiss....