Decided on March 12,2008



Diva Singh, Judicial Member - (1.) THIS is an appeal filed by the assessee against the Block Assessment Order dated 28.11.1997 of ACIT, Circle-1(1), Agra pertaining to Block Period 01.04.1986 to 03.11.1996.
(2.) In the present appeal the assessee has raised as much as 8 grounds. However, at the time of hearing it was submitted by the learned A.R. that the assessee does not wish to press ground No. 1 & 8, as such, the same are dismissed as withdrawn. It was also submitted that ground No. 6 & 7 are general in nature, accordingly, no adjudication is required thereon. The effective ground agitated by the assessee are grounds No. 2 to 5 which read as under: (2) Because the addition of Rs. 19,03,027/- as investment in silver bullion is unjustified and illegal. Excepting approx 26 Kg., it did not belong to the assessee. Assessee's replies dated 6.1.97; 20.10.97 and 17.11.97 and the evidence have not been correctly appreciated. (3) Because the addition of Rs. 8,72,713/- as investment in silver ornaments is unjustified and illegal. The valuation as added is also not correct. These ornaments did not belong to the assessee, and were not assessable in his hands. Assessee's replies and evidence have not been correctly appreciated. Making charges estimated at 10% are also imaginary, and very high. (4) Because on the facts on record, the addition of Rs. 50,787/- as undisclosed cash is wrong and unjustified. It was proved by cogent evidence. Confirmation of Dalai and details of ornaments sold were wrongly ignored. (5) Because the addition of Rs. 3,89,545/- as unexplained investment in shares is unjustified and illegal. Assesee's replies are not correctly appreciated and considered. These shares do not belong to the assessee. The assessee's residential premises at 9/200-E, Moti Katra, Agra and 6/19, Hing Ki Mandi, Agra alongwith the business premises at Chaubey ji ka Phatak, Kinari Bazar Agra, in the name and style of M/s Kanhiyalal Anil Kumar was subjected to action under Section 132(1) on 03.11.1996. Certain ornaments and valuables were found and seized which were not shown in the books of accounts of the assessee. Accordingly after requiring the assessee to file its return for the block period 01.04.1986 to 03.11.1996 the A.O. proceeded to make certain additions in the return filed on 29.09.1997.
(3.) WITH regard to the additions challenged before the Tribune vide ground No. 1 the relevant facts as per the Block Assessment Order are that from the residence 9/200-E, Moti Katra silver bullion weighing 265.9 Kgs. was seized. The assessee was required to explain the source thereof. As per the Block Assessment Order the assessee filed written submission dated 06.10.1997 stating that 240 kgs. of silver bullion belonged to the assessee's two sons namely Shri Anil Kumar Agarwal and Shri Manoj Kumar Agarwal equally. The said silver bullion was stated to be originally belonging to the father of the assessees Late Shri Bhajan Lai Agarwal who was carrying silver bullion business at Kherly, District Alwar, Rajasthan. A few days prior to his death in 1968 the said silver was given to his wife Late Smt. Narmata Devi (mother of the assessee). As per the assessee's version the said silver bullion continued to remain in her possession as her property. After her death in 1983 the said silver bullion was taken by the assessee and distributed equally as per the will of the assessee's mother between the two sons after their marriage. Accordingly, it was submitted that the said silver found at the residence was owned by his two sons living in the same house and did not belong to the assessee.;

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