TaxTMI 
TaxTMI 
2019 (4) TMI 81
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....t Period 01.04.1987 to 27.11.1997. 2. This Appeal was admitted by a Co-ordinate Bench of this Court on 02.11.2009 on the following substantial questions of law: "1. Whether the Income Tax Appellate Tribunal was right in law and had valid material to hold that an amount of Rs. 3,00,000/- has to be added as undisclosed income on account of excess stock of jewellery for the assessment year 1998-99 in the block assessment under section 158 BC of the Income Tax Act, 1961? 2. Whether on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal was right in law in estimating the undisclosed income at Rs. 3,00,000/- in the absence of any seized material, which is a condition precedent for computation of undisclosed inc....
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....erial MD/S/B&D/34 in the form of notebook is totally ignored in the findings of the Assessing Officer. He has not appreciated the elaborate finding of the A.O. The assessee has not produced any evidence supporting their contention. We should not forget that the statement of one partner Shri Tamilarasu who has been examined on oath at the time of search and he stated it is true there is some excess stock for which they have no evidence to prove their stand. In the present case, the total addition for undisclosed income of Rs. 80,000/- for the assessment year 1997-98 and consequent disallowance of interest of Rs. 14,400/- and Rs. 9,600/- for the assessment year 1997-98 and 1998-99. Secondly, a sum of Rs. 7,62,190/- being the excess stock of g....
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.... account of excess stock of gold jewellery to be treated as undisclosed income for the assessment year 1998-99. The Assessing Officer is directed accordingly and modify the assessment order." 4. The learned counsel for the Assessee Mr.R.Sivaraman, submitted that though the learned CIT (Appeals) had deleted the additions made on account of alleged undisclosed income to the extent of Rs. 7,62,190/- on the basis of the details of jewellery belonging to the partners of the firm, the Tribunal while concluding that the order passed by the CIT (Appeals) is well reasoned, but it still directed the learned counsel for the Assessee to make concession with regard to some amount for addition as undisclosed income on the alleged excess stock of gold je....
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....y in an appropriate manner by recording the findings of facts on the basis of materials on record. We find that the learned CIT (Appeals) by giving an acceptable finding as quoted above on the basis of the seized material during the course of search, found that the alleged excess jewellery belonged to the partners of the Assesee firm and therefore the addition made in the hands of the Assessee firm to the extent of Rs. 7,62,190/- towards 1859 gms jewellery was not justified. Though the learned Tribunal had no contra material before it, but for the reasons best known to the learned members of the Tribunal, they stated in paragraph 5 that "We specifically direct the ld. counsel for the assessee to offer some undisclosed income on account of e....