2003 (5) TMI 5

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....ibunal dated August 16, 2001. The assessee-appellant has raised the issue regarding addition of Rs. 85,000 being unexplained investment in the purchases made under section 69 of the Income-tax Act, 1961. The assessee derives income from semi-wholesale business from Iron and hardware. The relevant assessment year is 1990-91. The assessee declared an income of Rs. 75,270. There was a search on June 7, 1989, under section 132(1) of the Income-tax Act, 1961. Thereafter, regular assessment was made under section 143(3) of the Act, inter alia, the addition of Rs. 85,000 is made on account of loose slips found at the residence of one partner of the assessee. That addition has been deleted by the Commissioner of Income-tax (Appeals). In appeal bef....

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....n arrived at by the Commissioner of Income-tax (Appeals) is found to be erroneous, more particularly when there is no surrender on account of excess stock found or sales made outside the books by the assessee-firm. However, the investment as found out by the Commissioner of Income-tax (Appeals) though the said paper is Rs. 85,000 and not Rs. 1,08,737 in view of the return of goods and expenses, etc. Besides this no error is found in the decision of the Commissioner of Income-tax (Appeals) in deleting the addition of Rs. 4,000 and Rs. 53,800 on account of unaccounted sales as the same were made by the Assessing Officer without any basis." Learned counsel for the appellant submits that he surrendered the excess value of the stock found durin....