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2020 (1) TMI 55 - HC - Income TaxAddition as income from outside sources in the books of account - additions made by the AO during a search and seizure operation at the business and residential premises of the assessee - HELD THAT:- Tribunal held that figures which were written in a diary which was seized from the house of the assessee would have to be explained to some extent at least, and the assessee could not get away merely by asserting that even though those diaries were recovered from him yet since the handwriting was not proved to be his, he had no duty at all to explain about all those figures. The Tribunal also noticed that the assessee had initially owned these entries and had stated that they were of subsequent years i.e. 1990-91 and he would explain them in that year's return but he did not explain them. The reasoning adopted by the Tribunal is correct while that adopted by the Commissioner was perverse. Once the assessee accepted the documents which were seized from his premises, and once he had owned the entries and undertaken to explain them in the next financial year and had not offered any explanation whatsoever the amount representing were rightly added to other income of the assess. Application of Gross Profit (GP) rate on the difference of the stock which was physical present in stock register - Finding of the Tribunal is a pure finding of fact and no sufficient cause has been shown to us to reverse the same.
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