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2019 (4) TMI 81 - MADRAS HIGH COURTBlock assessment u/s 158BC - undisclosed income on account of excess stock of jewellery - no sized material found - Tribunal estimating the undisclosed income in the absence of any seized material, which is a condition precedent for computation of undisclosed income under section 158BB - HELD THAT:- Tribunal being a fact finding body has failed to discharge its duty in an appropriate manner by recording the findings of facts on the basis of materials on record. CIT (Appeals) by giving an acceptable finding as quoted above on the basis of the seized material during the course of search, found that the alleged excess jewellery belonged to the partners of the Assesee firm and therefore the addition made in the hands of the Assessee firm to the extent of ₹ 7,62,190/- towards 1859 gms jewellery was not justified. Though the Tribunal had no contra material before it, but for the reasons best known to the learned members of the Tribunal, they stated in paragraph 5 that “We specifically direct the assessee to offer some undisclosed income on account of excess stock of gold jewellery for the assessment year 1998-99 out of ₹ 7,62,190/-”. Thereafter, the learned Tribunal proceeded to state that “The ld. counsel for the assesee relied on the order passed by the first Appellate authority but, he agreed for the addition of ₹ 3,00,000/- out of ₹ 7,62,190/- as undisclosed income for the assessment year 1998- 99.” We are unable to reconcile ourselves with the doubtful observations made by the learned Tribunal in the aforesaid manner. It was not at all open to the learned Tribunal to seek for any concession from the Assessee much less direct the learned counsel to make any such concession. No such concession is said to have been made by the learned counsel for the Assessee. We are rather pained and surprised at the aforesaid tenor of the order passed by the learned members of the Income Tax Appellate Tribunal- Decided in favour of assessee.
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