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2013 (12) TMI 317 - HC - Income TaxUnaccounted purchase - block assessment - Held that:- Assessee firm is engaged in the trading of gold items of the gold ornaments and certainly, not in Air Conditioner or electrical goods - The parties in Amritsar were not having the creditworthiness. Most of them are not assessed to tax and even if one or two are assessed to tax, their worth is low, even lower than the jewellery lend by them to the assessee - There is no evidence of genuine transaction with the assessee except in one or two cases - No entry was found in the books of account mentioned by the assessee or party concerned. Nothing was reflected in the books of account of the six creditors - The explanation furnished by the assessee is not found acceptable - New gold ornaments were given and old gold ornaments were taken by the Amritsar parties - Decided against assessee. Cash found during search - Held that:- The same was deposited by one Sri B.P. Saxena as explained in the statement by Sri Kanhaiya Lal, at the time of search - Inspite of ample opportunities given, neither Sri Saxena was produced nor any other documentary evidence was filed in support of the claim - Decided against assessee. Interest under Section 158BFA(1) and 220(2) - Held that:- Following Punjab Skin Co. vs. Union of India [2001 (2) TMI 18 - SUPREME Court] - No authority has power to reduce or waive the interest levied under Section 158BFA for the block assessment - The charging of interest is mandatory - Decided against assessee.
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