9911796707
TMI Blog2003 (12) TMI 6X X X X Extracts X X X X X X X X Extracts X X X X ..... olves the following substantial questions of law: "(a) Whether, on the facts and in the circumstances of the case, the Tribunal was correct, both on facts and in law, in deleting the addition of Rs. 9,10,000? (b) Whether the learned Income-tax Appellate Tribunal was correct in law and on the facts and circumstances of the case in allowing the relief to the assessee on assumption that profits made on unaccounted sales have partly been invested in stocks and partly was available as cash, recovered during the course of search? (c) Whether the learned Income-tax Appellate Tribunal has erred in law and in facts to ignore/consider the entire document on the basis of which the finding was recorded by the Assessing Officer? (d) Whether the orde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 000, computed as profits on sales outside the books of account. The other two additions which have a direct bearing on the issue involved were two amounts of Rs. 10,10,000 and Rs. 8,84,127, respectively, on account of unexplained cash and unexplained investment in stocks. Aggrieved, the assessee preferred an appeal to the Tribunal. The Tribunal has deleted the addition of Rs. 9,10,000 made on account of alleged profits earned by the assessee on sales outside the books of account by observing thus: "Having heard the rival submissions and perused the material placed on our files and also considering the specific submissions made by the assessee before the Assessing Officer and that a surrender to the tune of Rs. 5 lakhs odd has been made on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ned cash and the value of undisclosed assets, a further addition on account of profits on sales outside the books amounted to double taxation inasmuch as the unexplained cash and the stocks would obviously come out of the profits on sales allegedly made by the assessee outside the books of account. It is pleaded that the decision of the Tribunal being reasonable, it does not involve any substantial question of law and, therefore, this court should decline to entertain the appeal. True that the jurisdiction of this court under section 260A of the Act is limited. It is confined to entertaining only such appeals against orders of the Tribunal which involve a substantial question of law. Though the expression "substantial question of law" is n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion whether specific withdrawals as claimed by the assessee were reflected in various business accounts or not. Obviously, the co-relation of these withdrawals with the cash recovered and the Assessing Officer's satisfaction thereon may have a direct nexus with the addition made on account of profits allegedly earned on undisclosed sales, as is sought to be pleaded by learned counsel for the assessee. The same would be the position in respect of the addition made as unexplained investment in stocks, which issue again has been restored to the file of the Assessing Officer. We are, therefore, of the view that if the afore-extracted conclusion drawn by the Tribunal is allowed to attain finality, it would directly and substantially affect the r ..... X X X X Extracts X X X X X X X X Extracts X X X X
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