Commissioner Of Income Tax vs Kashmiri Lal
2006 Latest Caselaw 835 Del

JUDGMENT

Shiv Narayan Dhingra, J.

1. A search and seizure operation was carried at the residence and business premises of the assessed and the stock at the business premises of the assessed was valued by the search team decoding the tags found on the stock. The code used by the assessed was as under:

L U C K N O W A R T

1 2 3 4 5 6 7 8 9 0

(words having corresponding numerals).

2. There is no dispute about the value of stock assessed except Lehnga Dupattas of two different qualities on the basis of code. The team decoded the value of each piece of Lehnga of one quality at Rs. 12,000/- and Rs. 25,000/- of another quality and the total value of thirty eight pieces (30 of first quality and eight of second quality) was assessed at Rs. 5,60,000/-. assessed claimed that there was a mistake in calculation of the stock value of these two items and items were in fact of value Rs. 1200/- and Rs. 2500/- per piece and not Rs. 12,000/- and Rs. 25,000/- per piece as calculated. Therefore, the total value of lehngas was only Rs. 56,000/-. The Tribunal upheld version of the assessed and considered that the decoding in respect of these two types of lehngas was not correctly done and the assessed was entitled to reduction of value of excess calculation amounting to Rs. 5,04,000/-. The other amount allowed by the Tribunal is a deletion of Rs. 7,80,000/- on the ground that the assessed had shown invoices in respect of these stock and Assessing Officer had not taken into consideration the invoices along with the supporting documents filed by the assessed since same were not found during the course of search. The Tribunal believed the version of the assesse that invoices were not received from the purchaser before the date of search and for this reason they were not entered in the books of accounts. After considering the documents and the fact that payments were made from the accounts of the asessee of the above bills, the addition of Rs. 7,80,788/- was deleted. The Department has preferred an appeal against the order of ITAT for deletion of these two accounts.

3. We have perused all the records and heard the counsel for the parties. We find that no substantial question of law arises in this case. The total value of Lehnga Dupattas is a question of fact. Similarly disallowing of deduction of Rs. 7,80,788/- on the basis of purchase invoice is also a question of fact.

4. We find no ground to admit the appeal. Appeal is hereby dismissed.