9911796707
TMI Blog2008 (9) TMI 940X X X X Extracts X X X X X X X X Extracts X X X X ..... the regular returns as unexplained investment under Section 69 of the Income Tax Act, 1961 (for short the act). 2. The essential facts of the case leading up to this appeals are as follows: The assessee filed return of income on 23.11.1998 declaring total income of ₹ 1,93,160/- and the case was selected for scrutiny with prior approval of the Additional commissioner of Income Tax Range I, Hubli. The assessee during the Assessment Year 198-99 had declared long term capital loss for having gold and diamond and notice was issued under Section 142(1) and 143(2) of the Act. The assessee appeared and produced the copy of the application filed under VDIS Scheme, 1197 as also Certificate accepting the said application and contended ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fficer insofar as it relates to the transaction of sales of jewellery to M/s. Mahalaxmi jewellers, Hubli, however reversed the finding of the Commissioner Income Tax (Appeals) confirming the order passed by the Assessing Authority regarding sale of diamonds and held that the income regarding ale diamonds to M/s. Mahalaxmi Jewellars C.D. Gems, Binal Gems and M/s. Smit Corporation, cannot be said to be unexplained investment as the same has been proved and allowed the appeal in part. Being aggrieved by the order passed by the Income tax Appellate Tribunal, regarding sale of jewellery to M/s. Mahalaxmi Jewellers, this appeal is filed under Section 260-A of the Income Tax Act, 1961. 3. We have heard the learned counsel for the parties. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... plication filed under Voluntary Declaration of Income Scheme? 6. The above said substantial question of law has been answered on similar facts in ITA No. 186/2004 by holding that the question as to whether the jewellery which is the subject matter of sale declared in the regular return is the same subject matter in the application filed under VDIS, 97 and the said decision in the aforesaid appeal would decide the question as to whether the income from the said transaction would be unexplained investment under Section 69 of the Act. If the assessee is able to prove that the bullion that was sold was made out of the jewellery declared in the application under VDIS 97, the said amount to unexplained investment under Section 69 of the A ..... X X X X Extracts X X X X X X X X Extracts X X X X
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