AI Drafter 
TaxTMI 
TaxTMI 
2014 (10) TMI 546
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.... 2. On 24.11.2009, a coordinate Bench has admitted the assessee's appeal on the following substantial questions of law:- "(i) Whether on the correct and true interpretation of Chapter XIV B and the definition of undisclosed income given therein the Tribunal was justified in law to confirm the addition of Rs. 2,32,417 on account of peak investment in the purchase of ornaments and then also to assume gross profit of Rs. 1,29,239/- being 25% of assumed sales of Rs. 5,16,956/- outside the account books of the appellant thereby ignoring the fact that page no.41 of seized paper marked as 28-Y found during the search was merely a dump paper which did not entitle the Income Tax Appellate Tribunal to confirm the addition. (iii). Whether t....
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....on on account of undisclosed income on account of gold jewelry, alleged to have been deposited in the names of Sarvashri Dinesh Kumar Gupta, B.S. Tayal and Dharmvir Singh. (4). Whether in the absence of any material on record, the Tribunal was justified in deleting the addition of Rs. 13,55,466/- on account of design order books seized during search. (5). Whether on the facts and in the circumstances of the case, the Tribunal is justified in law in deleting the additions of Rs. 3,52,999/- and Rs. 47,480/- on account of calculations in the seized books?" 4. The brief facts of the case are that on 11.9.1995, a search and seizure operation was carried out under Section 132 of the Income Tax Act, against the assessee's firm. During....
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.... 9. After hearing both the parties and on perusal of material available on record, it appears that the figures were mentioned as 74,000/- and 2,32,417/- against the dates of 9.4.1993 and 10.4.1993 represented figures in rupees and the same cannot be taken as stock entry. Details in terms of weight, date and amount is mentioned. The total transaction comes to Rs. 5,16,956/- as mentioned in the orders of the lower authorities. The assessee has stated that this is regarding stock checking of ornaments on various dates from different safe almiras, so it was rightly presumed that it relates to sale, out side the books. Moreover, it is a finding of fact, hence we declined to interfere with the order of the Tribunal pertaining to the grievance o....
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....utam Verma and Sri Jai Prakash Agarwal. 11. The Tribunal after examining the material, observed that the statement of Smt. Nutan Verma recorded in the second round is not acceptable as there were various discrepancies. Sri Jai Prakash Agarwal was never produced so, the addition was confirmed by the Tribunal. 12. In the peculiar facts and circumstances of the case, order passed by the Tribunal appears reasonable and requires no interference. From the order of the Tribunal, it appears that the issue is based on finding of facts. Hence, we find no merit in the grievance raised by the assessee. 13. In view of the above, the order passed by the Tribunal is hereby sustained along-with the reasons mentioned herein 14. In the appeal fil....
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.... order passed by the Tribunal, the same is hereby sustained along-with the reasons mentioned therein. 19. Next grievance of the Department is pertaining to the addition of Rs. 29,49,024 on account of pawning business. During the course of search, a bunch of loose papers was seized. On some of the papers word 'girvi' and description of jewelry etc. were indicated along-with the names of the borrowers. It is the claim of the assessee that they were not engaged in the pawning business. The said business was being done by M/s Mahindra Saraf and all these transactions were recorded on loose sheets. The persons whose names were written on the loose sheets were produced before the A.O. and they confirmed the claim of the assessee that t....
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....pt and date of deposit along-with design description and quantity etc. were mentioned. On the other hand, assessee explained that it were the rough pages meant to lure a customer when he was dissatisfied with the readily available jewelry in the show room, then the salesman as per requirement, noted down the size, design, weight and advance etc. If the papers were torn off it means that the transaction is confirmed. If the paper was left over in the design book then this can be treated only as a rough work which could not be converted into actual transaction. Nearly 1500 out of 2000 pages were not available in the design book, it means that the same were torn off. 25. After recording the statement of the assessee, the A.O. made an additi....