Devi Prasad Singh, J. - (1.) HEARD Sri D. D. Chopra learned Counsel for the appellant and perused record. None appears for the respondent.
(2.) IN the present appeal, filed under Section of Income Tax Act (In short the Act), the Division Bench of this Court, vide order dated 24.1.2008, framed the following substantial questions of law: (1) Whether the learned Income Tax Appellate Tribunal was justified in allowing relief in appeal preferred by the assessee while overlooking the appeal before it preferred the Revenue on the same addition thereby rendering the Revenue's appeal ineffective and otiose. (2) Whether the learned Income Tax Appellate Tribunal was justified in law and on the facts of the case in allowing a relief of Rs. 10,21,000/ -. (3) Whether the learned Income Tax Appellate Tribunal was justified in estimating the value of unexplained stock at Rs. 5.00 Lacs as against Rs. 20,21,095.00 valued by the Assessing Officer assessed on the basis of physical verification of stock during the course of survey of the assessee's premises Under Section of the Income Tax Act. The brief matrix of the controversy involved, relates to assessment year 1998 -99 based on survey of the business establishment of the assessee in pursuance of powers conferred under Section of the Act. The assessee is a iron and hardware merchant carrying on business in town area of Shahjadpur Tehsil Akbarpur, District Ambedkarnagar. On 9.8.1998, survey was conducted under Section of the Act. Statement of assessee was recorded by the Income Tax Inspector wherein, the assessee stated that he was having total stock of Rs. 2 lacs to Rs. 2.5 lacs. It was noted by the Assessing Officer that total stock was based on inventories A and B prepared on the spot which was to the tune of Rs. 22,71,091.00. The difference between the stock found by the Revenue and in the assessee, comes to Rs. 20,21,092.00. The assessee was called on to file objection. After considering objection filed by the assessee, the Assessing Officer made addition of Rs. 20,21,095.00.
(3.) AT the appellate stage, the assessee filed an affidavit and stated that records were interpolated and the stock shown by the Income Tax Inspector while doing survey, is based on incorrect facts. In the affidavit, the assessee specifically given reference to various items which were not found in the stock but have been shown by the interpolation of record. The Tribunal has discussed this aspect in para -3 of its order.;