- (1.) This appeal under Section 260A of the Income-tax ( Act ) is at the instance of an assessee and is directed against an order dated July 7, 2003 passed by the Income-tax Appellate Tribunal, C Bench, Kolkata, in Income-tax Appeal bearing ITA (SS) No.5(Cal) of 2001 for the block period comprising the Assessment Years 1987-88 to 1997-98 and thereby dismissing the appeal filed by the appellant.
(2.) Being dissatisfied, the assessee has come up with the present appeal.
(3.) The facts giving rise to filing of this appeal may be summed up thus: a) The appellant is assessed to tax under the Income-tax Act, and the present appeal arises out of the appellant s block assessment under the Act comprising the Assessment Years 1987-88 to 1997-98. b) On February 18, 1997, a search was conducted by the Income-tax Department at the place of the business and residential premises of the appellant. In course of the said search, the appellant was required to make a statement between midnight on February 18, 1997 and 2 p.m. on February 19, 1997. c) The appellant stated, inter alia, as regards his total investment in shares. He had disclosed shares in the company called Jamsehdpur Cement Ltd. of Rs.11 lac and that shares amounting to Rs.8 lac in Jamshedpur Cement Ltd. were purchased in different names which the appellant admitted as belonging to him. d) According to the appellant, subsequently on going through the record, he found that the shares of amount of Rs.8 lac adverted to in his statement in course of search were actually held by two limited companies, namely, Fairdeal Automobiles Pvt. Ltd. (55,000 shares of Rs.10/- each amounting to Rs.5,50,000/-) and Usha Karna India Pvt. Ltd. (38,500 shares of Rs.10/- each amounting to Rs.3,85,000/-). The said two companies had made the investments out of their own funds and the same were duly reflected in their accounts and balance-sheet. e) According to the appellant, the said two companies are his group concerns and the appellant is the common signatory. It is further alleged that the appellant had signed the application/transfer deed in respect of the said shares acquired by the said two companies and made statement as he did in the confusion of the search in the abnormal situation then prevailing. f) The appellant subsequently explained the position to the Assessing Officer in course of block assessment proceeding by two letters dated January 14, 1995 and February 22, 1999. g) In course of search a piece of paper was found reflecting certain dates, names, quantity, rate and amount and the period mentioned was from December 9, 1994 to April 28, 1995 total quantity 43,800 and the total amount of Rs.7,82,800/-. No question was further put to the appellant in respect of the said paper in course of the search. However, in course of block assessment proceeding, the appellant sought to explain that the said paper contained particulars of the quotations put to the Stock Exchange in order to show frequent dealings in shares of Jamshedpur Cement Ltd. before and during the rights issue made by the said company and the same did not reflect any actual transaction of purchase or sale. The appellant subsequently got an affidavit affirmed by a stock broker who allegedly had put to the quotations mentioned in the seized papers stating on oath that the seized paper was a list of quotations put through to the stock exchange and that there was no actual transaction of purchase or sale and such affidavit was annexed to the written notes of submission filed by the appellant before the Commissioner of Income-tax (Appeals) in the appeal against the block assessment order. h) By the block assessment order passed on February 25, 1999, the Assessing Officer made an addition of Rs.7,82,800/- on the basis of the said paper and the statement of the appellant recorded at the time of search. The Assessing Officer proceeded that the seized paper reflected particulars of the shares purchased by the appellant. i) Being aggrieved, the appellant preferred an appeal before the Commissioner of Income-tax (Appeals) and before the Commissioner of Income-tax (Appeals), the appellant filed written submission in respect of the said addition of Rs.7,82,800/-. The Commissioner of Income-tax (Appeals) by an order dated October 11, 2000 deleted the said addition of Rs.7,82,800/- made in the assessment. j) Being dissatisfied, the Revenue preferred an appeal against the said appellate order before the Income-tax Appellate Tribunal and the Tribunal by order dated July 7, 2003 allowed the appeal filed by the Revenue. k) The Tribunal proceeded on the basis that the seized paper in fact reflected actual transaction whereby the appellant purchased the shares and as such the appellant s statement was corroborated by the said seized paper. Being dissatisfied, the appellant has come up with the present appeal.;