2004 (1) TMI 40

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.... circumstances of the case, the finding of the Income-tax Appellate Tribunal confirming an ad hoc addition of Rs. 1,50,000 out of Rs. 2,00,000 made by the Assessing Officer on account of alleged excess stock was perverse and without any material to support the finding?" At the request of both counsel, we have taken up the matter for final hearing and dispense with the paper book. We have rea....

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....e raised after the search. The rest of the transaction as per the seized papers taken as covered by the additional investments declared after also taking into account the unaccounted expenses of the assessee as per the seized record." The Appellate Tribunal, on page 15, para. 13, has considered some of the aspects. However, at the end of para. 14, at page 17, it held as under: "Since the ass....

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....s to Rs. 1.5 lakhs or ought to have arrived at a conclusion that addition is not required to be made. After holding that the Assessing Officer had not given the basis for arriving at the estimate of Rs. 2 lakhs it committed the same error by ordering an ad hoc addition of Rs. 1.5 lakhs, without any cogent reasons or basis. Such a finding, which is without any basis amounts to a perverse finding. ....