2007 (7) TMI 45

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....ons of Rs. 1,642, Rs. 36,140, Rs. 99,000 and Rs. 6,23,000 made by the Assessing Officer and upheld by the Commissioner of Income-tax (Appeals), by holding that the assessee had discharged the onus by explaining that slips contain the rough calculations and it was for the Revenue to prove that the same represent the transaction of sale of stock-in-hand ? 2. Whether, on the facts and in the circumstances of the case, the findings of the Tribunal are perverse ?" 2 The facts are that on January 19, 1988, a search was carried out at the premises of M/s. Nanak Jewellers, Patiala, owned by the assessee and during the search, the assessee was found in possession of 1470 grams of gold ornaments and Rs. 50,750 in cash. Five     ....

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....be the owner of any money, bullion, jewellery or other valuable article and such money, bullion, jewellery or valuable article is not recorded in the books of account, if any, maintained by him for any source of income, and the assessee offers no explanation about the nature and source of acquisition of money, bullion, jewellery or other valuable article, or the explanation offered by him is not, in the opinion of the Assessing Officer, satisfactory, the money and the value of the bullion, jewellery or other valuable article may be deemed to be the income of the assessee for such financial year." 7 A Division Bench of the Calcutta High Court in Kantilal Chandulal and Co. v. CIT [1982] 136 ITR 889, while interpreting the provisions of secti....

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....tes of past or future planned and arranged purchases. In fact, from the nature of entries, the assessees explanation that the same may be representing rough calculations of the proposed orders or supplies to various jewellers sounds more plausible because had these been records of sales or purchases, names of the particles would have been there. In this case, only one name on slip No.1 has been mentioned, in respect of which an addition of Rs. 1,642 has been made. The slip does not contain any date and also does not clearly show whether it is sale or purchase. In fact slip No.4 clearly contains the printed word 'ESTIMATE'. 20. We also find merit in the argument on behalf of the assessees that the Revenue itself is not clear about the infer....