JUDGMENT :

Mohammed Shaffiq, J.

Prayer: Appeal under Section 260A of the Income Tax Act, 1961 against the order dated 22.12.2006 made in ITA.No.1255(Mds)/2000 on the file of the Income Tax Appellate Tribunal, Chennai ‘D’ Bench for the assessment year 1995-96.

1. The substantial questions of law that arise for consideration in this Tax Case Appeal are relating to the admissibility, relevance and evidentiary value of the statement recorded at the time of search under Section 132(4) of the Income Tax Act, 1961, while making assessment by the assessing officer.

2. At the outset, it may be relevant to set out briefly the following facts:

2.1 The appellant is engaged in Jewellery and pawn brokerage business. While so, there was a search in his business and residential premises on 7th and 8th December, 1994, in the course of which, cash of Rs.2,28,975/-, excess stock of gold jewellery to the extent of 3838 grams and silver ornaments to the extent of 117.894 kgs and advance of Rs.1,50,000/- made to one K.C.Sampathkumar were recovered. The statement of the appellant was also recorded under s