- (1.) This appeal under section 260-A of the Income Tax Act has been filed against the judgment and order dated 25.07.2005 passed by the Income Tax Appellate Tribunal, Lucknow in I.T.A.No.811/Lko/2001 for the block period mentioned above.
(2.) A coordinate Bench of this Court vide order dated 06.02.2006 has admitted the appeal on the following substantial questions of law: 1.Whether on the facts and in the circumstances of the case, the Hon'ble Income Tax Appellate Tribunal was justified in law in deleting the addition of Rs.22,35,783 made by the Assessing Officer on account of unexplained investment in purchases during the financial year 1998-99 by directing that the figures for the F.Y. 1998-99 should be adopted for working out the availability of funds for making undisclosed investment instead of figures of F.Y. 1997-98 adopted by the Assessing Officer, without appreciating that the unexplained investment in purchases during the F.Y. 1998-99 was determined by the Assessing Officer on the basis of peak unexplained investment as recorded in the seized papers and the undisclosed turnover effected by the respondent after the date of the said peak investment in purchases could not have been taken into consideration while working out the availability of the funds with the respondent for making the said peak undisclosed investment. 2.Whether on the facts and in the circumstances of the case, the Hon'ble Income Tax Appellate Tribunal was justified in law in deleting the addition of Rs.5,75,000/- made on account of unexplained cash found during the course of the search without appreciating that the claim of the respondent made subsequent to the search that the said cash belonged to Dr.T.K.Rastogi was only an afterthought and the affidavit given by Dr. T.K.Rastogi in this regard could not have been relied upon as it was only a self serving statement nor supported by any documentary evidence.
(3.) The brief facts of the case are that on 08.07.1999, a search was conducted at various residential and business premises of M/s Jugal Kishore Jewellers Group, wherein the assessee is a partner. During the course of search, several loose papers, cash and jewellery were found and seized.;