2013 (9) TMI 1274 - AT - Income Tax

Summary

Issues involved: Addition of undisclosed income of Rs. 29 lakhs.

Summary:
The appeal was against the order of CIT(A) for the assessment year 2008-09, concerning the addition of Rs. 29 lakhs as undisclosed income. The assessee claimed that the money seized by the police belonged to him, which he received from selling gold jewellery in Bangalore. The assessing officer disbelieved this explanation and made the addition. The ld. representative argued that the assessee, a goldsmith, used to purchase and sell jewellery without bills. On the other hand, the ld.DR contended that the explanation was stretched and unbelievable, as one creditor claimed the money was borrowed from the assessee's brother. The Tribunal found no evidence to support the purchase or sale of gold jewellery. Although the assessee claimed to have sold gold to a jeweller in Bangalore, the payment was made by cheque, raising doubts about how the assessee had Rs. 30 lakhs in cash in Bangalore. The Tribunal concluded that the assessee's explanation was unsatisfactory, indicating a suppression of material facts. Therefore, the assessing officer's decision to disbelieve the explanation and make the addition was upheld, resulting in the dismissal of the appeal.

In conclusion, the Tribunal confirmed the addition of Rs. 29 lakhs as undisclosed income, as the assessee's explanation was deemed unsatisfactory and indicative of material suppression.