TaxTMI 
TaxTMI 
2013 (8) TMI 104
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....- made by A.O. on account of sale, purchase and manufacture of silver ornaments etc. out side the books ignoring the fact that the assessee could not establish the job work during the course of assessment proceedings whereas opportunities were afforded to him." 3. The brief facts of the case are that a search under section 132 of the Income Tax Act, 1961 ('the Act' hereinafter) was carried out on 22.02.2003. The assessee firm is engaged in the trading of silver ornaments and artificial jewellery. During the course of search some papers were found pertaining to proprietary business of job work and commission carried on by Shri Pankaj Garg, Partner. The seized books and papers said to be belonged to Shri Pankaj Garg. Considering these fact....
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....he A.O. at the time of block assessment proceeding in case of M/s N P Jewellers wherein it was claimed by filing an affidavit that all seized papers belonging to Shri Pankaj Garg were related to job work business but no such evidences was filed which may substantiate the claim of the assessee. Under these circumstances, the A.O. noticed that there is no option left with him except to treat the entire seized papers pertaining to the assessee's sale and purchase business including manufacturing/processing of silver ornaments etc. On this basis of presumption, the A.O. presumed that the assessee must have invested Rs.12,00,000/- in purchase of silver outside books, thereafter sale proceed against this investment must have routed in the busines....
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....n no books of accounts for the alleged purchases and sales supported by bills and vouchers were found. Even no creditors or debtors for the goods purchased and sold are noted nor there is any opening or closing stock in any of the year under the block assessment. Also in the assessment order passed under section 158BC it has been held in the case of the Firm that the papers found and seized mostly relates to job work done by Shri Pankaj Garg, the appellant and the assessment framed in the case of the firm has attained finality. Accordingly the Ground No.1 to 5 raised by the appellant that he was engaged in job work business and not purchase and sale of silver ornaments and that the relevant Annexures and diaries related to the job work done....
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....at under the deeming fiction of sections 68, 69, 69A, 69B & 69C burden is on the Department to prove that the entries represent undisclosed income of the assessee. After detailed discussions, the CIT(A) found that in absence of any material from which the purchases, sale and net profit as presumed by the A.O. could be arrived at as done by the A.O. except through estimation, which is not permissible. The CIT(A) accordingly directed the A.O. to delete the addition and income retuned directed to be accepted. 7. We have heard the ld. representatives of the parties and record perused. The CIT(A) after a detailed discussion in his order found that the assessee is engaged in job work business and not in purchase and sale of silver ornaments. T....