9911796707
TMI Blog2006 (4) TMI 438X X X X Extracts X X X X X X X X Extracts X X X X ..... f by way of this consolidated order. 2. As far as assessee s appeal is concerned, the short issue that we are required to adjudicate is whether or not the CIT(A) was justified in sustaining the addition of Rs. 15,02,776, on account of alleged unexplained investment, made by the Assessing Officer under section 69 of the Act. 3. To adjudicate on this issue only few admitted facts need to be referred to. The assessee-company owns and operates a cold storage near Vashi, New Bombay. On 7-8-1990, premises of the assessee-company and residence of one of the directors was subjected to search and seizure operation. During the course of search, the assessee was found to be in possession of some goods stored in the cold storage in respect of w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aken into cognizance. . . ." The assessee is not satisfied with the stand so taken by the CIT(A) and is in further appeal before us contending that the CIT(A) ought to have deleted the addition in entirety. 4. We have heard the rival contentions, perused the material on record and duly considered the factual matrix of the case as also the applicable legal position. 5. We have noticed that the assessee is in warehousing and cold storage business and there is no material on record to indicate that the assessee was, or has been, in the business of dealing in the goods which were stored by the assessee. As for the cases in which the persons owning the goods staked their claim, revenue has accepted the same as belonging to them. The on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oduction. . . . It is not clear why the other parties claimed to be owners of the goods did not turn up." We cannot approve this kind of a reasoning adopted by the authorities below. Once it is accepted that the assessee is in warehousing business and there is contemporaneous record showing these goods as having been received by outsiders, and in the absence of anything establishing that the goods belonged to the assessee, the stand of the assessee cannot be declined. It is quite possible, and it is a commercial reality that a person who has actually deposited the goods for warehousing does not show up to claim its ownership in case he finds it difficult to explain his sources for having acquired the goods. The explanation of the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X
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