S.S.GREWAL, J. - (1.) THIS is an appeal under s. 260A of the IT Act, 1961, against the order passed by the Income-tax Appellate Tribunal, Amritsar Bench, Amritsar (for short, "the Tribunal") in ITA No. 477/Asr of 1995 decided on 8th Oct., 2002.
(2.) THE assessee was engaged in the manufacturing of rice rubber rolls. Search and seizure operation was conducted on 11th April, 1989, at the residential premises of Shri O.P. Sehgal, who had an interest in the firm. During the course of search, a document in the form of balance sheet for the year ending 31st March, 1987, was found and seized from the said premises. Scrutiny of the balance sheet revealed that the same related to three different firms. The balance sheet also contained three names, i.e., Ashish Singla, Vishal and Vikas, and against these names there were various entries on the assets and liabilities side. From this consolidated balance sheet, the Assessing Officer (for short, "the AO"), inferred that it belonged to three firms, namely, Ashish Enterprises, Dada Colony, Jalandhar, Vishal Rubber Products, Dada Colony, Jalandhar, and Vikas Rubber Products, Dada Colony, Jalandhar, Shri O. P. Sehgal was found to have interest in all these three firms inasmuch as in all these firms the family members of Sh. O.P. Sehgal were the partners. The said seized document was compared with the balance sheet filed by the said firms for the asst. yr. 1987-88 and in view of the discrepancies arising out of the comparison, proceedings under s. 148 of the IT Act, 1961 (for short "the Act"), were initiated. The AO, after weighing the entire evidence and in view of the various discrepancies, rejected the books of account under s. 145(2) of the IT Act and made the following additions : On appeal, the CIT(A), Jalandhar, deleted the addition of Rs. 7,16,322 made by the AO by holding that no material could be found by the Asstt. CIT to corroborate the entries made in the so- called balance sheet on the basis of which addition was made. The order of the CIT(A) was upheld by the Tribunal while dismissing the appeal of the Revenue.
(3.) IN this appeal, the Revenue has prayed for determination of the following questions of law : "1. Whether, on the facts and in the circumstances of the case, the learned Tribunal was right in law in ignoring the seized document found during the search in the form of balance sheet which has been proved to be correct by the AO while invoking the provisions of s. 145(2) of the IT Act, 1961 ? 2. Whether, on the facts and in the circumstances of the case, the learned Tribunal has erred in law in ignoring that the assessee had failed to disown the seized document in the form of balance sheet or its entries which formed the basis for invoking the provisions of s. 145(2) of the IT Act, 1961 ?" ;