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2013 (7) TMI 520 - GUJARAT HIGH COURTWhether the AT is justified in holding that the AO is required to be directed to treat the funds received on account of family settlement as funds available in the hands of the assessee – It appears that during the course of survey at the premises wherein the assessee is a key person and had owned up the activities of the firm, stock had been found without any books of accounts nor were there any stock registers available - such account had been treated as unexplained investment - according to the assessee the source of investment was from the family settlement received by the assesse - It also noted that there was no reason for rejecting the sources and application of the funds as enumerated in the fund flaw statement - the AT is justified in deleting the addition towards unexplained expenditure on foreign tour made by the AO - the AT is justified in deleting the addition of unaccounted interest made by the AO. - Decided against the revenue. Whether the AT is justified in deleting the addition by way of unexplained stock made by the AO - the statement of affairs submitted by the assesse - the assessee has shown stock - the investment in stock is fully taken care of as per the statement of affairs – thus on this issue also court do not find any reason to interfere in the order of the CIT (Appeals) - this ground is also rejected - Held that:- Both the authorities have correctly held in favour of the assessee- respondent - When the assessee had already sold stock and when the investment of the stock was fully explained the same could not have been termed as unexplained investment in stock - This issue hardly gives rise to any substantial question of law – appeal decided against revenue.
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