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TMI Blog2013 (8) TMI 104X X X X Extracts X X X X X X X X Extracts X X X X ..... oods after job work to them is written. A.O. was not able to place on record or identify any bills either found in the course of search proceedings or in the course of assessment proceedings to support the stand that the assessee has made alleged purchases of silver weighing 2441 kgs. and effected sales of Rs.60,00,000/- each in Assessment Year 2002-03 and for the part period in 2003-04. CIT(A) found that there is no material on record to suggest that the details of job work noted against the names of the persons in any way could be presumed or inferred as purchase and sale business of the assessee as held by the A.O. on mere presumption. The CIT(A) further noticed that even at the time of search under section 132 in the course of recod ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... usiness of job work and commission carried on by Shri Pankaj Garg, Partner. The seized books and papers said to be belonged to Shri Pankaj Garg. Considering these facts, section 158BC read with section 158BD of the Act was considered by the A.O. for the Block Period 01.04.1996 to 22.02.2003. The assessee filed return of income on 28.02.2005 declaring undisclosed income of Rs.1,08,330/- for different years which was reproduced by the A.O. at page no.2 of his order. On scrutiny of the seized papers, the A.O. noticed that in these seized books of account, incoming silver, wire etc. name of the karigars etc. were mentioned but name of the persons from whom raw materials were received were not given. Further, name of persons to whom finished goo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at the assessee must have invested Rs.12,00,000/- in purchase of silver outside books, thereafter sale proceed against this investment must have routed in the business for subsequent period. The total disclosed income for A.Y. 2002-03 has been calculated by the A.O. at Rs.18,00,000/- (12,00,000/- undisclosed investment plus Rs.6,00,000/- profit). The undisclosed income for A.Y. 2003-04 has been estimated by the A.O. at Rs.6,00,000/-. The A.O. further noticed that in absence of any reply from the assessee, profit from iron chains/items business was estimated at Rs.50,000 and the same was treated as undisclosed income for A.Y. 2002-03. The A.O. calculated the undisclosed income of block period as under :- (Page no.8) "8. Having regard to th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Ground No.1 to 5 raised by the appellant that he was engaged in job work business and not purchase and sale of silver ornaments and that the relevant Annexures and diaries related to the job work done by him is allowed." 6. In respect of estimation of income, the CIT(A) noted that the A.O. has ignored the seized material and has applied own presumption and calculated the figures after rejecting the claim of the assessee that the papers seized related to job work and commission income. The CIT(A) noted that the A.O. has made estimation on presumption without bringing any supporting material on record. The A.O. has estimated by his own calculation and method. The CIT(A) noted that it is not clear as to which books the A.O. has referred to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ives of the parties and record perused. The CIT(A) after a detailed discussion in his order found that the assessee is engaged in job work business and not in purchase and sale of silver ornaments. The CIT(A) noticed that the assessee was able to show that the contents of the documents seized as per Annexure-7 related to job work undertaken by the assessee for various constituents whose name along with quantity of alloy received on different dates and subsequent return of processed goods after job work to them is written. The A.O. was not able to place on record or identify any bills either found in the course of search proceedings or in the course of assessment proceedings to support the stand that he assessee has made alleged purchases of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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