C I T Vs. SURAXA H DHRU

JUDGEMENT

(1.) ALL these appeals arise out of the common judgment and order passed by the Income Tax Appellate Tribunal, Ahmedabad Bench and involve common questions on law and facts. Hence, they are decided by this common judgment. For the sake of convenience, Tax Appeal No.567/2003 is taken as the lead matter.

(2.) THESE Tax Appeals u/s.260A of the Income -tax Act, 1961 arise out of the judgment and order dated 19.06.2003 passed by the Income Tax Appellate Tribunal, Ahmedabad Bench in IT(SS)A Nos.01/Ahd/2002 to 08/Ahd/2002 whereby, the appeals filed by the assessee were allowed.

(3.) BRIEFLY stated, the facts are that on 13.10.1998 a search u/s.132 of the Act was carried out at the business as well as residential premises of the assessee. The search operation concluded on 14.10.1998. Vide communication dated 25.09.2000, the assessee was asked to reconcile the stock shown in the Books of Accounts and the stock report submitted to the Bank. The reply given by the assessee was found to be unacceptable and therefore, show cause Notice was issued to show cause as to why the difference amount should not be treated as unaccounted stock. The assessee gave its reply on 13.10.2000. After hearing both the sides, the A.O assessed an amount of Rs.6,62,760/ - as undisclosed income of the assessee being unexplained investment and ordered to initiate penalty u/s.158BFA(2) of the Act, vide order dated 25.10.2000.