COMMISSIONER OF INCOME TAX Vs. RAJ JEWELLERS

JUDGEMENT

(1.) PRESENT appeal has been filed by the department under Section 260 -A of the Income Tax Act, 1961, against the judgment and order dated 30.04.2007 passed by the Income Tax Appellate Tribunal, Lucknow, in I.T.A. No.563/Luc/2003 for the Block Period 01.04.1990 to 16.01.2001.

(2.) ON 14.07.2009, a Coordinate Bench of this Court has admitted the appeal on the following substantial questions of law: -

(3.) WITH this background, Sri D.D.Chopra, learned counsel for the department has justified the action of the A.O. He submits that the assessee was asked to explain diamond holdings. In reply, the assessee stated that diamonds in question were covered under VDIS, declared in the earlier year and also included a purchase from Surat. The assessee had produced a receipt from M/s Aashi Diamond, Surat and also a voucher book with 7 vouchers filled up, showing receipt of diamonds from family members and the partners of the assessee and its transferred from M/s Trubhuwan Dass Bhim Ji Zavery of Pune for being set in gold. The gold sent by Javery Brothers, was entered in the stock register. The A.O. stated that explanation given by the assessee was not convincing.