2011 (12) TMI 313

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....d in these appeals, for the purpose of convenience, the material facts in ITA No.580/2006 are narrated below: The Assessing Officer in respect of the assessee for the assessment year 1998-99, found that according to the return filed by the assessee-HUF, had declared interest from M/s. P. Vijayakumar & Co. and income from house property and long term capital loss for the year in question: in the diamonds and gold accounts, it had credited Rs. 5,93.450/- and Rs. 4,71.397/- received on sale of diamonds and gold ornaments respectively. To verify and ascertain the above credits, the assessee was asked to furnish the details like bills and details of jewellery. The assessee has furnished valuation report of gold ornaments and diamonds purchase....

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....s of bullion, and diamonds in individual case of the Kartha Shri Sha Mohanlal Punamchand and his brother Shri P. Vijaykumar. In all the cases similar bills were produced before the Assessing Officer. The Assessing Officer, after going through the particulars of the assessee and considering the contentions, brought the following cash credits under Section 68 of the Act: Diamond Account : Rs. 5,93,450/- Gold Bullion Account : Rs. 4,71.397/- The Assessing Officer initiated penalty proceedings under Section 274 r/w Section 271(1)(c) of the Act and also levied interest under Section 234B of the Act. Being aggrieved by the said order, the assessee filed an appeal before the Commissioner of Income Tax (Appeals), Davanagere. Th....

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....that the abovesaid substantial questions of law have already been considered and answered by this Court in ITA No. 218/2004 by order dated 23-9-2008 and the matter has been remitted to the Assessing Officer to pass fresh orders insofar as it relates to sale of jewellery to M/s. Mahalakshmi Jewellery. 6. The learned counsel appearing for the respondent, after going through the said judgment, submitted that the order passed in ITA No. 218/2004 and accordingly, the same order may be passed in these appeals also. 7. In ITA No.218/2004 disposed of on 23-9-2008, this Court while answering the substantial questions of law and remitting the matter to the Assessing Officer, passed the following order. "6. The abovesaid substantial question ....