TMI Blog2019 (4) TMI 81X X X X Extracts X X X X X X X X Extracts X X X X ..... ss jewellery belonged to the partners of the Assesee firm and therefore the addition made in the hands of the Assessee firm to the extent of ₹ 7,62,190/- towards 1859 gms jewellery was not justified. Though the Tribunal had no contra material before it, but for the reasons best known to the learned members of the Tribunal, they stated in paragraph 5 that “We specifically direct the assessee to offer some undisclosed income on account of excess stock of gold jewellery for the assessment year 1998-99 out of ₹ 7,62,190/-”. Thereafter, the learned Tribunal proceeded to state that “The ld. counsel for the assesee relied on the order passed by the first Appellate authority but, he agreed for the addition of ₹ 3,00,000/- out of & ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f ₹ 3,00,000/- has to be added as undisclosed income on account of excess stock of jewellery for the assessment year 1998-99 in the block assessment under section 158 BC of the Income Tax Act, 1961? 2. Whether on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal was right in law in estimating the undisclosed income at ₹ 3,00,000/- in the absence of any seized material, which is a condition precedent for computation of undisclosed income under section 158 BB of the Income Tax Act, 1961? 3 . The relevant portion of the order passed by the Tribunal is quoted below for ready reference : 4. We have heard both the parties and perused the material available on record. We have thoroughly g ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rget that the statement of one partner Shri Tamilarasu who has been examined on oath at the time of search and he stated it is true there is some excess stock for which they have no evidence to prove their stand. In the present case, the total addition for undisclosed income of ₹ 80,000/- for the assessment year 1997-98 and consequent disallowance of interest of ₹ 14,400/- and ₹ 9,600/- for the assessment year 1997-98 and 1998-99. Secondly, a sum of ₹ 7,62,190/- being the excess stock of gold jewellery treated as undisclosed income for the assessment year 1998-99 and lastly, undisclosed income of ₹ 74,864/- being the value of 9358 gms of jewellery as excess stock for the assessment year 1998-99. 5. As reg ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er. 4. The learned counsel for the Assessee Mr.R.Sivaraman, submitted that though the learned CIT (Appeals) had deleted the additions made on account of alleged undisclosed income to the extent of ₹ 7,62,190/- on the basis of the details of jewellery belonging to the partners of the firm, the Tribunal while concluding that the order passed by the CIT (Appeals) is well reasoned, but it still directed the learned counsel for the Assessee to make concession with regard to some amount for addition as undisclosed income on the alleged excess stock of gold jewellery and, though no such concession was made by the learned counsel for the Assessee, still recording such a concession, albeit wrongly the learned Tribunal made an addition o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... C.Sivakumar 365.910 Total 2570.920 6. The learned counsel for the Revenue Mr.T.R.Senthikumar was also unable to support the Impugned Order of the Tribunal to this extent. 7. Having considered the rival submissions we are constrained to observe that the learned Tribunal being a fact finding body has failed to discharge its duty in an appropriate manner by recording the findings of facts on the basis of materials on record. We find that the learned CIT (Appeals) by giving an acceptable finding as quoted above on the basis of the seized material during the course of search, found that the alleged excess jewellery belonged to the partn ..... X X X X Extracts X X X X X X X X Extracts X X X X
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