INCOME TAX OFFICER Vs. VIJAY KUMAR KESAR

JUDGEMENT

(1.) THE appellant-Revenue has preferred this appeal under Section 260A of the IT Act, 1961 (for short 'Act') against the order dt. 16th Dec., 2005 passed by the Income Tax Appellate Tribunal, Nagpur (for short 'the Tribunal') whereby the Tribunal has dismissed the appeal of the Revenue and upheld the order of the CIT(A).

(2.) THIS appeal has been admitted on the following substantial questions of law:

(3.) DURING assessment proceedings, the assessee referred to his letter dt. 31st Jan., 2000 in which he has stated that he could not file return for the asst. yrs. 1998-99 and 1999-2000 before survey proceedings as he was disturbed on account of suicidal death of his daughter. Stock found during survey has been taken by reducing the stock on 31st March, 1997 without considering the purchases and sales made between 1st April, 1997 and 31st Oct., 1999. The correct position could only be found by taking into consideration the transactions in goods upto the survey date. Similarly, full amount of cash was taken as undisclosed income ignoring that the assessee was doing regular business and was also doing cash transactions and maintaining cash balance regularly. The assessee made statement during survey proceedings as he was mentally disturbed. The declarations made by the assessee during survey proceedings were not true and correct and the same may be treated as cancelled. Cash found in the coffer (Tijori) behind 'Kaser Bartanwala' belongs to HUF namely, Vijay Kumar Kaser & Sons of which he is Karta. The HUF is an old assessee.