2009 (7) TMI 52

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....thi, Advocate for the appellant. JUDGMENT ADARSH KUMAR GOEL, J. - The revenue has preferred this appeal under Section 260A of the Income Tax Act, 1961 (for short, "the Act) against the order of Income Tax Appellate Tribunal, Amritsar Bench, Amritsar dated 30.12.2008 passed in ITA No. 442 (ASR)/2008 and ITA No. 453 (ASR)/2008 for the assessment year 2005-06, proposing to raise following subst....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....rcumstances of the case, the ITAT has erred in law in not appreciating that addition made on account of wages under section 69 of the I.T. Act, 1961 resulted into unaccounted income to the assessee?" (iv)"Whether on the facts and in the circumstances of the case, the ITAT has erred in law in not accepting that the estimate of unaccounted income was made by the AO on scientific and logical basis....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....partly set aside the addition. It was held that even though explanation of the assessee that the loose papers did not relate to payment of wages during the year in question may not be accepted, in absence of any other material, the loose sheets by itself were not enough to make addition as per estimate of the Assessing Officer. It was observed:- "Now the question is regarding estimating the inc....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....pt this submission. 5. No doubt, a false explanation of assessee may be a circumstance to be taken into account for recording a finding of undisclosed income and some degree of guess work is also permissible in such a situation, as held by the Supreme Court in Kachwala Gems Vs.  Joint Commissioner of Income Tax (2007) 288 ITR 10 (SC), relied upon by the learned counsel for the revenue, it ....