PRINCIPAL COMMISSIONER INCOME TAX SURAT Vs. NAGESHWAR ENTERPRISES

JUDGEMENT

(1.) This Tax Appeal under Section 260A of the Income Tax Act, 1961 (for short, 'the Act, 1961') is at the instance of the Revenue and is directed against the order passed by the Income Tax Appellate Tribunal, Surat, dated 03.05.2019, in the ITA No. 147/AHD/2011/SRT for the A.Y. 2007-2008.

(2.) The Revenue has proposed the following three questions of law for the consideration of this Court :

(3.) It appears from the materials on record that on the basis of the information received from the Deputy Director of Income Tax (Investigation) Unit (II) Surat, a search of the residential premises of the assessee was undertaken by the Directorate of Revenue Intelligence (DRI), Surat. In the course of the search, one of the partners of the firm, namely Shri Rajesh Gandhi, in his statement recorded on oath, admitted before the DRI as regards the undervaluation of the metallic yarn and jari/kasab to the extent of 60279.75 kgs., out of which 30405.00 kgs. pertains to the year under consideration. He admitted that the difference of the undervalued amount was paid in cash to the seller firm at China and Japan. In such circumstances, the case was selected for scrutiny.