COMMISSIONER OF INCOME Vs. N.G. JEWELLERS

JUDGEMENT

(1.) The instant income-tax appeal under section 260A of the Income-tax Act, 1961 (for short, "IT Act"), is directed against the order dated September 9, 2009 passed by the Income-tax Appellate Tribunal, Jaipur Bench "3", Jaipur (for short, "Tribunal") and relates to assessment year 2006-07.

(2.) The brief facts, necessary for disposal of the instant appeal, are that the respondent-assessee derives income from the business of trading of gold and silver ornaments and is a partnership firm. A search was carried out at the business premises of the assessee on August 4, 2005 and during the course of search incriminating material was found including loose papers, note books and proceeding under section 153C of the Income-tax Act was initiated.

(3.) The Assessing Officer (for short, "AO"), on the material found, raised certain queries inter alia (i) the difference of unexplained stock of gold and silver found to the tune of Rs. 1,33,836 and (ii) source of the amount advanced to parties, totalling Rs. 6,43,053. Though explanation was offered by the assessee on the query raised by the Assessing Officer, however, the Assessing Officer was not satisfies and made an addition to the extent of Rs. 4,33,836 on account of unexplained stock so also made an addition of Rs. 6,43,053 which is said to be the amount advanced by the assessee to the debtors and not proved.