1999 (9) TMI 25

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....plication No. 266 of 1999 is concerned, the following three questions were sought to be referred by the applicant : "1. Whether, on the facts and in the circumstances of the case and in law, the Tribunal was justified in deleting the addition of Rs. 19,03,677, Rs. 17,27,447 and Rs. 1,62,349 in the block periods made by the Assessing Officer by drawing an inference from the seized materials ? 2. Whether, on the facts and in the circumstances of the case and in law, the Tribunal was justified in taking the value of silver as on the date of seizure, i.e., January 9, 1997, rather than the date when the assessee was found to be the owner, namely, November 21, 1996 ? 3. Whether, on the facts and in the circumstances of the case and in la....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....t appears that the Departmental Representative supported the order of the Assessing Officer, however, he fairly conceded that some deduction on account of use of alloy in the manufacture of silver articles/utensils should have been given by the Assessing Officer and it is in view of this that 10, per cent. deduction has been given. Therefore, question No. 3 cannot be said to be a question of law. So far as question No. 2 is concerned, it appears that the Tribunal accepted the contentions raised by the Department. The actual seizure was effected on January 9, 1997, and the price as per the Government valuer's opinion was taken into consideration. Therefore, we find that when the case of the Department is accepted, it cannot be said that t....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....sed income detected as a result of search can be taxed only on the basis of the material found during the course of search and the Assessing Officer was not justified in recomputing the total income of the assessee for the various assessment years in the block assessment for which regular assessment is required to be made under section 143(3) of the Act. The Tribunal also considered the submissions with regard to (i) the action of the Assessing Officer in making addition by rejecting the trading accounts and estimating higher turnover and higher gross profit earned by the various assessees, (ii) making disallowances on account of interest and other expenses which were debited in the regular books of account. It was submitted that there was ....