ACIT v. Ram Singh Manmohan Singh

INCOME TAX ACT, 1961

--Search and seizure--Block assessmentUnaccounted sales--Search was conducted at the residence and jewellery shop of assessee. During search record seized included loose slips. AO alleging that sale through loose slips and karigar records were unaccounted sales, made the addition by applying GP rate. Held: CIT(A) had categorically stated that slips contained information regarding items sold, received for repairs, entered into books of account, tukras (solid gold after melting the gold belongs to the customers), duplicate items, rough estimates, advances received and remaining with the assessee and the advances returned. Further, CIT(A) had correctly observed that the items listed under the head sales/advances, remaining with the assessee, and advances returned could be taken to be sales of the assessee. He had correctly held that the ornaments' gathered by slips of advances had to be considered as sales of the assessee. There was no material on record to controvert the working of CIT(A) regarding the quantity by the slips.

Income Tax Act, 1961, Section 158BC

REFERRED : CS v. H.M. Esufli /Abdulali 90 ITR 271, RML Mehtrotra v. ACIT 68 ITD 288 (All) & CIT v. M.K.E. Memon 248 ITR 310 (Bom).