TMI Blog2007 (7) TMI 45X X X X Extracts X X X X X X X X Extracts X X X X ..... erred the following questions of law for the assessment year 1988-89 "1. Whether, on the facts and in the circumstances of the case, the Tribunal is right in deleting the additions of Rs. 1,642, Rs. 36,140, Rs. 99,000 and Rs. 6,23,000 made by the Assessing Officer and upheld by the Commissioner of Income-tax (Appeals), by holding that the assessee had discharged the onus by explaining that slips contain the rough calculations and it was for the Revenue to prove that the same represent the transaction of sale of stock-in-hand ? 2. Whether, on the facts and in the circumstances of the case, the findings of the Tribunal are perverse ?" 2 The facts are that on January 19, 1988, a search was carried out at the premises of M/s. Nanak Jewe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ellery or other valuable article and such money, bullion, jewellery or valuable article is not recorded in the books of account, if any, maintained by him for any source of income, and the assessee offers no explanation about the nature and source of acquisition of money, bullion, jewellery or other valuable article, or the explanation offered by him is not, in the opinion of the Assessing Officer, satisfactory, the money and the value of the bullion, jewellery or other valuable article may be deemed to be the income of the assessee for such financial year." 7 A Division Bench of the Calcutta High Court in Kantilal Chandulal and Co. v. CIT [1982] 136 ITR 889, while interpreting the provisions of section 69A of the Act had laid down ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nned and arranged purchases. In fact, from the nature of entries, the assessees explanation that the same may be representing rough calculations of the proposed orders or supplies to various jewellers sounds more plausible because had these been records of sales or purchases, names of the particles would have been there. In this case, only one name on slip No.1 has been mentioned, in respect of which an addition of Rs. 1,642 has been made. The slip does not contain any date and also does not clearly show whether it is sale or purchase. In fact slip No.4 clearly contains the printed word 'ESTIMATE'. 20. We also find merit in the argument on behalf of the assessees that the Revenue itself is not clear about the inference to be drawn from th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... score amounting to Rs. 3,00,000 would be covered in the amount of Rs. 5,00,000 surrendered by him as the income from such business would automatically be invested in the stock of jewellery, which was found from his possession on January 19, 1988, and against which the surrender had been made. Thus, looking from any angle, we are unable to uphold the action of the Assessing Officer in making the additions of Rs. 1,642, Rs. 36,140, Rs. 99,000 and Rs. 6,23,000 on the basis of these loose slips. Same are, therefore, deleted. This disposed of ground Nos. I to 5." 10 Learned counsel for the Revenue, however, could not point out any illegality on the basis of which the findings recorded by the Tribunal could be said to be perverse. Accordingl ..... X X X X Extracts X X X X X X X X Extracts X X X X
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