COMMISSIONER OF INCOME TAX Vs. P.P. JEWELLERS

JUDGEMENT

(1.) THIS appeal under s. 260A of the IT Act, 1961 has been preferred by the Revenue being aggrieved by the order dt. 4th

(2.) THE Revenue had filed the appeal before the Tribunal on the ground that the CIT(A) had erred in deleting the addition of Rs. 10,08,597 made on account of gross profit on suppressed sales, which in turn, arose out of the unexplained shortage of stock found on the date of the search. We note that the Tribunal has examined the factual position in detail and has confirmed the deletion made by the CIT(A).

(3.) THE Tribunal noted that the Explanation offered by the assessee with regard to the discrepancy in the weight of the gold and diamond jewellery ought to have been accepted by the AO. This was because the weight of the jewellery items was taken by the Department in bulk which, according to the Tribunal, included items like price tags, threads and studded items. Secondly, the Tribunal was also impressed by the fact that difference in the weight was very small.