V.G. Sabhahit, J.— This appeal by the Assessee is filed being aggrieved by the order passed by the Income Tax Appellate Tribunal, Bangalore Bench-C, dated December 19, 2003, in I.T.A. No. 605/3ang/2003 confirming the order passed by the Commissioner of Income Tax (Appeals), Hubli, dated March 27, 2003.

2. The essential facts of the case leading to this appeal are as follows:

3. The Assessee had filed return of income on October 10, 1998, declaring total income of Rs. 92,950. The same was selected for scrutiny with prior approval of the Additional Commissioner of Income Tax, Range I, Hubli. The Assessee had shown capital loss on sale of diamond amounting to Rs. 1,038 and a perusal of personal capital accounts revealed that there is accretion of Rs. 8,29,330 on account of sale of gold jewellery and diamond. Notices under Section 143(2)(i) were issued on September 30, 1999, informing the Assessee to appear on October 14, 1999 with the books of account, bills, vouchers and details of assets acquired. The Assessee appeared through Sri R.H. Agarwal, a chartered accountant and produced the books of account maintained by her as proprietor of M/s. Kailash Traders. To show that gold wa