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2017 (10) TMI 65 - ITAT MUMBAIUnexplained investment - Sources of cash receipts which were deposited in the bank account to make FDR - assessee during the course of appellate proceeding before learned CIT(A) has explained that ₹ 12.5 lakh in cash was received during the impugned assessment year by selling the gold ornaments - Held that:- There is a CBDT instruction/guidelines no. 1916 dated 11th May, 1994 which although relates to non seizure of gold during the course of search operation u/s 132 which has duly considered Indian traditions and culture, wherein it is permitted by CBDT not to seize gold ornaments and jewellery in case of married lady to the tune of 500 gram in the course of search operations where no wealth tax returns are filed by said married lady and hence we are of the view that the explanation of the assessee of holding of the gold ornament/jewellery to the tune of 500 gram stand accepted, while the rest of the theory of selling balance of the gold /silver as put forward by the assessee stood rejected and it is held that the assessee could not substantiate the genuineness of the transaction for the balance quantity of sale of gold ornaments/silver and hence after giving credit for value of gold to the tune of 500 gms, rest of the amount shall be charged to tax in the hands of the assessee as undisclosed income . While for sale of 500 gram of the gold, the same shall be brought to tax by computing income from capital gains for which the assessee shall submit necessary details which shall be verified by the AO in accordance with law. Thus, we confirm the appellate order of learned CIT(A) with above modification wherein the assessee will get part relief as detailed above. We order accordingly. For AY 2005-06 The assessee has also received gift of ₹ 3.0 lacs in cash from Mr Abdul Kader Fakir Mohammed Rakhangi, a close relative. The cash received by the assessee from gits of ₹ 3,00,000/- also did not stood proved as no gift deed/confirmations are produced from donor by the assessee nor genuineness of the gift is proved. The said donor has claimed to have not maintained any bank account . He has claimed to have given gift of ₹ 3,00,000/- as well purchased gold of ₹ 5.62 lacs from the assessee for impugned assessment year out of his total claimed income from agriculture from sale of mangoes of ₹ 6-7.50 lacs. He does not hold any PAN and has never filed return of income .. We have already discussed about creditworthiness of said Mr Abdul Kader Fakir Mohammed Rakhangi while adverting to his purchases of gold from the assessee while adjudicating appeal for AY 2005-06 nor even genuineness of gift in cash from Mr Abdul Kader Fakir Mohammed Rakhangi is proved. It is incomprehensive that he has income of ₹ 6-7.50 lacs for the previous year relevant to assessment year 2007-08 and he has utilised ₹ 8.62 lacs in purchasing gold and giving gift to assessee
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