SANJEEV KUMAR PANDHI Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) This appeal has been preferred by the assessee against the order of the Income Tax Appellate Tribunal, Amritsar Bench, Amritsar dated 28.7.2005 in ITA No.84 (ASR)/2004, in respect of assessment year 2000- 01, proposing following substantial questions of law:-

(2.) The assessee filed return of income for the assessment year 2000-01 declaring income of Rs.1,84,784/-. On 3.3.2000, survey was carried out under section 133 of the Income Tax Act, 1961 (for short, 'the Act') at the business premises of the assessee and inventory of stocks of bricks, coal and wood was prepared. The case was taken up for scrutiny. The assessee admitted that goods and registers were not complete. Investment of Rs.3,80,000/- in April/May 1999 for construction of Air Pollution Control Device (Chimney) (APCD) was also admitted. The Assessing Officer observed that the assessee could not justify the investment out of the income declared and offered additional income of Rs.1,50,000/- as per order sheet dated 24.1.2002 which was signed by the assessee. Accordingly, addition of amount was made to the income of the assessee. The assessee preferred an appeal and submitted that source of investment was duly shown in the capital statement filed before the Assessing Officer and, therefore, addition was not justified. The CIT(A) dismissed the appeal.

(3.) On further appeal, the Tribunal held that part addition was justified as the difference counted by the Assessing Officer was Rs.1,18,000/- and the Assessing Officer was not justified in making addition to the extent of surrender. The appeal of the assessee was, accordingly, allowed to this extent, as per finding recorded in para 5.3.