- (1.) THIS Tax Appeal has been preferred by the Revenue against the order of the Income Tax Appellate Tribunal ( hereinafter referred to as " ITAT), wherein the ITAT has dismissed the appeal of the Revenue in I.T. (SS)A.No.147/Pat/2005 upholding the order passed by the Commissioner of Income Tax(Appeals).
(2.) THE brief facts are that the assessee is the partnership firm, which deals in gold and silver jewellery and derived income from running a jewellery shop. A search and seizure under Section 132 of the Income Tax Act was conducted on 26.9.2001 and on subsequent dates at the business premises of the assessee. During the course of search, cash, gold, diamond and silver jewellery were found and seized. In course of the assessment proceeding, the Assessing Officer added : (i)Rs.17,00,378/ on account of suppression of gross profit; (ii)The Assessing Officer has also added Rs.37,78,883/ on account of unexplained unsecured loans and on account of unexplained sundry debtors appearing in the loose sheets ; (iii) The Assessing Officer made an addition of Rs. 4,74,658/ on account of excess stock of gold jewellery found during the search; (iv) An addition of Rs.25,235/ on account of deficit in silver and stone stock; (v) Addition of Rs.1,16, 210/ was found at the business premises out of which an addition of Rs. 1,00,000/ was made by the Assessing Officer.
(3.) BEING aggrieved by the assessment order, the assessee preferred appeal before the C.I.T.(Appeals). The C.I.T. (Appeals) vide order 18.2.2005 allowed the appeal of the assessee and deleted all the aforesaid additions. Against the said order, the Revenue preferred appeal before the ITAT. Vide order dated 2.8.2006, the ITAT upheld the order of C.I.T. (Appeals) and dismissed the appeal of the Revenue. Being aggrieved by the order of ITAT, the Revenue has preferred this appeal. The Revenue has preferred this appeal, inter alia, raising various substantial questions of law in respect of deletion on all the five counts.;