TMI Blog1999 (12) TMI 688X X X X Extracts X X X X X X X X Extracts X X X X ..... the Act, to the tune of Rs. 2,82,487 in toto , despite the fact that the ITAT has upheld addition in respect of concealed income to the tune of Rs. 12,728 and addition of Rs. 19,853 has been set aside for verification of the Assessing Officer." 1. The Assessing Officer after initiating penalty proceedings worked out the concealed income at Rs. 3,54,822. However, in the quantum appeal, the ITAT allowed substantial relief and thus assessed income was reduced to Rs. 2,46,753 as against returned income of Rs. 2,33,089. Consequently, concealed income for purposes of section 271(1)( c ) was reduced to Rs. 12,728 by the ld. CIT(A). In respect of addition of Rs. 19,853, the matter was set aside by the ld. CIT(A) and no fresh order has been pas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t addition relates to value of items of jewellery appearing at Sr. No. 101 valued in the Panchnama at Rs. 18,500. The ITO has accepted the explanation to the extent of Rs. 5,772 which represents the payment for purchase of some moti etc. purchased as per a regular bill for Rs. 5,772 (page 63 of PB), the payment of which was made by cheque. The balance amount of Rs. 12,728 is included in the total addition of Mamtaben s ornaments to the tune of Rs. 66,452. It was explained that these items were got made from the materials purchased out of family funds and withdrawals shown in the cash flow chart. The acquisition is proved from seized papers, copies thereof are lying at pages 63 to 70 of the paper book. We have examined those documents and ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act. The explanation of the assessee has been substantially accepted. Even explanation relating to majority of items belonging to Smt. Mamtaben has also been accepted. The addition of Rs. 12,728 has been sustained "in the absence of day-to-day cash book. Reliance on such cash flow statement prepared after a gap of several years can hardly support the assessee s contention." The claim has not been accepted, but it cannot be said that the same was not a bona fide claim. Further, there is no material to show that jewellery did not belong to Smt. Mamtaben as claimed and was concealed income of the assessee. The test of probabilities is not satisfied in this case. We are, therefore, unable to hold that on facts and in the circumstances of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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