2010 (3) TMI 1295

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....IX/2(3)/14/98-99 dated 24-03-2003. The assessment was framed by the ACIT, Central Circle-2(3), Ahmedabad u/s.143(3) of the Income-tax Act, 1961 (hereinafter referred to as 'the Act') vide his order dated 24-03-1998 for the assessment year 1995-96. First we will deal with assessee's appeal in ITA No.2891/Ahd/2003. 2. The only issue in this appeal of the assessee is against the order of CIT(A) in regard to telescoping not allowed by the Assessing Officer as well, as against the cash available with the assessee on account of disclosure in the firm to the extent of Rs. 6,64,546/- i.e. M/s. Shah Chemicals. Before us the following effective two grounds raised by the assessee:- "I. DENIAL OF TELESCOPING EFFECT OF UNEXPLAINED ASSETS ....

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....sessment year 1995-96 and we find that the assessee has already availed the benefit of telescoping to the extent of Rs. 4,51,500/- vide A'O's order dated 30-12-2009. The relevant directions of Tribunal in para-3 was as under:- "3. In view of these facts and circumstances of the case it is noticed that during the course of search proceedings the physical verification of stock of various concerns of Shah Bhimani Group including that of M/s. Shah Chemicals in which the assessee's is a partner has been carried out M/s Shah Chemicals submitted reconciliation statement regarding discrepancy shortage/excess of various items on the basis of comparison of book stock and physical stock as taken by the search party On the basis of such reconc....

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....ng Officer to verify whether M/s. Shah Chemicals has utilized this cash in hand on account of sale of unaccounted sales or not. Whether M/s. Shah Chemicals has spent this amount on account of unaccounted expenditure or not and the Assessing Officer will find from the search material in these group cases. In view of these directions we set aside this issue to the file of Assessing Officer for verification." The Assessing Officer in the case of Shri Jahesh P Bhimani dated 30-12-2009 has already allowed telescoping to the extent of Rs. 4,51,500/- and, we further direct the Assessing Officer that if further cash is available in the hands of assessee from the firm's cash, then the AO after examining the principle of telescoping, will allow th....