JUDGEMENT
M.C. Agarwal, Judicial Member -
(1.)THIS is a second appeal by the assessee arising out of his assessment for asst. year 1984-85.
(2.)We have heard the learned counsel for the assessee and the learned Departmental Representative and have perused the material placed before us.
The assessee is an individual and carries on business of purchase and sale of silver ornaments, utensils, etc., in the name of M/s Anil Kumar Sheetal Kumar Nahata. A search was held by the Income-tax Department on the residential and business premises of the assessee from 13th December, 1983 to 17th December, 1983! During the search, silver ornaments and utensils were seized and were found to be in excess of the stock as per books. After investigation in the assessment proceedings silver ornaments amounting to 125.44 kgs. were held by the ITO to remain unexplained and he made an addition of Rs. 3,49,225 representing the value of this property describing the addition to be made under Section 69A of the Income-tax Act, 1961. The assessee had explained the said silver to have been purchased from one Rashid & Company of Jabalpur as under:
JUDGEMENT_12803_TLIT0_19880.htm
(3.)THERE were following quantities of silver as well, which the assessing officer has initially considered to be in excess but on consideration of the evidence held them to have been properly explained. In the present appeal, therefore, we are not concerned with them:
JUDGEMENT_12803_TLIT0_19881.htm
Regarding the alleged purchase of silver amounting to 125.44 kg. from Rashid & Co., Jabalpur the assessing officer (IAC Asst.) did not accept the assessee's contention. The reason was that at the time of search this silver was not found recorded in any books of account, the assessee in his examination under Section 132(4) did not offer any explanation about the source of acquisition, and on inquiry Mohd. Rashid, the alleged proprietor, was found to be a man of very humble means and the assessee did not produce him for examination.
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