1999 (9) TMI 25 - HC - Income Tax

Summary

Issues involved: The Commissioner, Surat, aggrieved by a Tribunal order, seeks to refer questions regarding addition of income, valuation of seized items, and deduction on alloy contents.

Question 1 - Addition of Income: The Tribunal considered undisclosed income for specific assessment years and disallowances made by the Assessing Officer. It was argued that only undisclosed income found during search should be taxed under section 158BC, not total income for various assessment years. The Tribunal referenced a previous court decision and concluded that undisclosed income as defined in section 158B should be assessed under Chapter XIV-B, while other income should be assessed under Chapter XIV.

Question 2 - Valuation of Seized Items: The Tribunal accepted the Department's contention that the valuation of seized silver items should be based on the price as per the Government valuer's opinion at the time of seizure on January 9, 1997, rather than when the assessee was found to be the owner on November 21, 1996.

Question 3 - Deduction on Alloy Contents: The Tribunal rejected further deduction of 10% on alloy contents of silver utensils, as the expert's valuation already considered the alloy used in manufacturing. The Departmental Representative acknowledged that some deduction should have been given for the alloy, hence the 10% deduction was appropriate.

The court found no error in the Tribunal's decisions and rejected the application, stating that no referable question of law arose from the Tribunal's order. The application was discharged with no order as to costs.