9911796707
TMI Blog2013 (12) TMI 482X X X X Extracts X X X X X X X X Extracts X X X X ..... the facts and in the circumstances of the case, the Hon'ble Income Tax Appellate Tribunal was justified in law in deleting the addition of Rs.22,35,783 made by the Assessing Officer on account of unexplained investment in purchases during the financial year 1998-99 by directing that the figures for the F.Y. 1998-99 should be adopted for working out the availability of funds for making undisclosed investment instead of figures of F.Y. 1997-98 adopted by the Assessing Officer, without appreciating that the unexplained investment in purchases during the F.Y. 1998-99 was determined by the Assessing Officer on the basis of peak unexplained investment as recorded in the seized papers and the undisclosed turnover effected by the respondent after t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Thus, the value of undisclosed purchase was computed at Rs.31,94,870+67,557 = Rs.32,62,427. Out of this amount, source of Rs.10,26,644 was treated as shown available out of the declared undisclosed funds. So, the A.O. has taken the balance amount of Rs.22,62,427 as on 'undisclosed investment in purchases' for the year 1998-99. Finally, the A.O. made the addition of this amount for the said year. However, the said addition was reduced by the First Appellate Authority to Rs.3,47,798/- by giving a relief to the assessee of Rs.18,87,985/-. Further, in second appeal, the Tribunal deleted the remaining amount of Rs.3,47,798/-. Being aggrieved, the department has filed the present appeal. With this background, Sri D.D.Chopra, learned counsel fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sed by the A.O. and made a request to set aside the impugned order passed by the Tribunal as well as by the CIT(A). On the other hand, Sri Rakesh Pandey, learned counsel for the assessee relied on the impugned order passed by the Tribunal. He submits that the assessee has already declared the undisclosed income of Rs.79,00,000/-. The assessee disclosed the unaccounted sale and 20% profit thereon as undisclosed income. Further, learned counsel submits that for the year (1998-99), the assesse has shown a sum of Rs.1,12,58,177/- as undisclosed sales, but the A.O. again made a separate addition for undisclosed peak purchases for Rs.22,35,783/- on the basis of seized material. He also submits that out of total weight of 9480.327 gm. gold, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is so then the same needs fresh determination. Before passing impugned order in a mechanical way, the Tribunal has not examined properly the facts pertaining to the availability of investment. If the finding of the facts is against the material on record or it has ignored the relevant material, the said findings can be scrutinized by this Court and is liable to be set aside the order to find out as to whether the finding is vital or not. It is necessary to examine the orders passed by the authorities below, as per the ratio laid down in the case of CTT vs. Brandavan Prem Narain, 2005 (27) NTN 366 Alld. In the instant case, the finding of facts are not clear and the material available on record was ignored, therefore, we set aside the impu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... visit Lucknow on 27.06.1999 and he had withdrawn Rs.6,05,850/- from the SBI, Main Branch, Lucknow on 28.06.1999 and 01.07.1999 by converting the sterling Pounds brought by him from England. He had handed over a sum of Rs.5,75,000/- for safe custody, out of that withdrawal, to the assessee as he went to visit his friends and relatives at Bareilly, Mussorie, Delhi and Patna. On 10.07.1999, he came to know that money was seized on 08.07.1999 by the income tax department from the assessee. The said affidavit which is self explanatory was accepted by the CIT(A) as well as by the Tribunal and accordingly addition in question was deleted. Needless to mention that the Tribunal is a final fact finding authority as per the ratio laid down in the fo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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