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TMI Blog2015 (7) TMI 1186X X X X Extracts X X X X X X X X Extracts X X X X ..... ee derives income from the business of trading of gold and silver ornaments and is a partnership firm. A search was carried out at the business premises of the assessee on August 4, 2005 and during the course of search incriminating material was found including loose papers, note books and proceeding under section 153C of the Income-tax Act was initiated. 3. The Assessing Officer (for short, "AO"), on the material found, raised certain queries inter alia (i) the difference of unexplained stock of gold and silver found to the tune of Rs. 4,33,836 and (ii) source of the amount advanced to parties, totalling Rs. 6,43,053. Though explanation was offered by the assessee on the query raised by the Assessing Officer, however, the Assessing Office ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... acceptable evidence only to that extent, the addition was made. He further contended that there was no explanation at the time of search that the stock related to sister concern and this was merely a claim without evidence. He further contended that whatever stock was found of the sister concern, namely ; Rajendra Prasad Narendra Kumar was stock of the said concern and there was no concern or connection of the assessee with M/s. Rajendra Prasad Narendra Kumar. He thus contended that this claim is an afterthought as none of the partners conveyed this fact and the claim being even without any material or evidence, ought not to have been accepted by the appellate authorities. In so far as the claim with regard to the advance is concerned, no a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y constituted and M/s. Rajendra Prasad Narendra Kumar being an old concern, goods were being transferred from M/s. Rajendra Prasad Narendra Kumar and vice versa to the present assessee and during the course of search itself, the partners in question No. 6 specifically asserted that the stock of M/s. Rajendra Prasad Narendra Kumar is also vailable at the premises of M/s. N. G. Jewellers (assessee). It is also admitted that silver items to the extent of 15.5 kgs. pertaining to stock of M/s. Rajendra Prasad Narendra Kumar was lying at the residence of the partners of the assessee firm at the time of search and on the, same material, this was held to be explained. It has also come on record that stock to this extent was found short at the time ..... X X X X Extracts X X X X X X X X Extracts X X X X
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