Per Shri T.V.K Natarajachandran, Accountant Member - This is an appeal by the revenue which is directed against the order of the CIT(A), Nasik dated 31-3-1987 wherein he deleted the addition of Rs. 45,454 made by the ITO under section 69A of the Income-tax Act, 1961. Revenue has taken ground to urge that the CIT (A) erred in deleting the amount and therefore, the order of the CIT (A) be vacated and that of the ITO be confirmed.

2. The assessee is a registered firm carrying on business in purchase and sale of gold and silver. The assessment year involved is 1977-78 for which the previous year is S.Y. 2032. On 5-5-1976, the Central Excise authorities searched the business premises of the assessee and seized, gold ornaments weighing 933 gms. Based on the explanation given by the assessee and the decision of the Central Excise authorities, the Assessing Officer concluded that the excess stock found represented unaccounted stock of the assessee for which the source of investment was not explained satisfactorily. Therefore, the value of excess gold jewellery found was assessed as concealed income.

3. On appeal, the CIT (A) noted the fact that the addition was made heavily relying on t