TMI Blog2016 (7) TMI 615X X X X Extracts X X X X X X X X Extracts X X X X ..... DVOCATE ORAL JUDGMENT (PER : HONOURABLE MR.JUSTICE KS JHAVERI) 1. By way of this appeal, the department has challenged order dated 22.6.2007 passed by the Income Tax Appellate Tribunal, Ahmedabad Bench A in ITA No.2266/Ahd/2003 for the Assessment Year 1999-2000. 2. At the time of admitting this appeal, this Court has framed following questions of law:- (1) Whether the Appellate Tribunal was right in law and on facts in upholding the deletion of addition of ₹ 81,92,710 made on account of unaccounted stock ? (2) Whether the Appellate Tribunal was right in shifting the burden of proof of payment of unaccounted stock found during the course of search and seizure proceedings on the Department? 3. Learn ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... upon the following observations of the Tribunal made in the impugned order. 5.3 ...... a) The assessee's reluctance in not producing its stock or the Jangad register, which it claims to have maintained, could possible be due the fact of the stock in its godown, and thus entery into the said register(s), being inclusive of unaccounted stock, i.e. which it purchases and sells outside its regular books of accounts; it admittedly also engaging in unaccounted trade, with there being no mention of the maintenance of such registers in its tax audit report. However, the finding of carrying on the said unaccounted business/trade, being only in pursuance to the search, any addition/ disallowance to its respect, being undisclosed income ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act, and which would require a definite finding with regard thereto, which we find as missing, the non-claim of such unaccounted purchase by the assessee, as alleged by the Revenue, only results in the same being not allowed as a deductible expenditure, and which is what S.69C of the Act purports to do, per its proviso, effective 01/04/1999. As such, there is no scope for a further addition, even as the Revenue's case, as held, is unsubstantiated. 4.1 In view of above, he prayed to dismiss this appeal. 5. We have heard learned counsel for both sides and also perused the record. We have also gone through the decision relied upon by the learned advocate. We find merit in the submission of learned advocate for the assessee and we ..... X X X X Extracts X X X X X X X X Extracts X X X X
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