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2005 (10) TMI 217 - AT - Income TaxIncome disclosed Under Voluntary Disclosure Scheme - Whether, the CIT(A) was justified in deleting the addition on account of introduction in the capital account, against the sale proceeds of silver utensils claimed to have been sold by the assessee ? - HELD THAT:- We find that the Assessing Officer has given the remand report after examining the matter afresh in detail and nothing adverse was found against the assessee. Here it is important to mention that it is not the case of the revenue that the remand report furnished by the Assessing Officer is not a valid report or not reliable or the view taken by the Assessing Officer in the remand report is not a possible view permissible under the law. It is also not the case of the revenue that the revenue should be provided one more opportunity to furnish a revised remand report, therefore, in the absence thereof, we are of the view that the remand report furnished by the Assessing Officer is a valid report in the eye of law and in the absence of any other contrary material brought on record by the revenue, we do not find any infirmity in the order of the Ld. CIT(A) in relying on the remand report furnished by the Assessing Officer and in accepting the claim of the assessee. We are of the view that the revenue has failed to substantiate its claim that the silver utensils do not exist, neither transported from Kolkata to Delhi nor sold to Delhi merchants and the alleged sale proceeds is nothing but an accommodation entry. As a matter of fact, the Assessing Officer in the remand report has finally accepted that the silver utensils were properly disclosed, it was transported by trucks as evidenced by consignment notes, the same was delivered at Delhi which was also confirmed by the consignees and there is no direct evidence to show that the jewellers of Delhi have given accommodation entries to the assessee. Besides this, the Assessing Officer while disallowing the long-term capital loss on sale of such silver utensils has accepted that such loss is loss on sale of personal effects. Under these circumstances, we are of the view that assessee has discharged his burden that the silver utensils which were disclosed under VDIS, 1997, transported by trucks and sold at Delhi, the sale proceeds were obtained through banking channels and disclosed in the books of account, therefore, the assessee has proved the identity, creditworthiness and genuineness of the transactions in terms of section 68 of the I.T. Act and, therefore, the addition made by the Assessing Officer at Rs. 3,46,83,900 is not sustainable in law and accordingly, we are inclined to uphold the finding of the Ld. CIT(A) in deleting the same. We, therefore, answer the question referred to this Special Bench in favour of the assessee and against the revenue. The matter will now go to the regular Bench for disposing of the appeal of revenue on other issues keeping in view the decision of Special Bench rendered hereinabove. Thus, the reference stands disposed of.
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