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2014 (5) TMI 468 - AT - Income TaxAttempt to reduce the total income – Addition of unexplained jewellery – Held that:- The Revenue has not controverted the fact that the business premises and the personal residential premises, both, were situated in a single building - why the gold jewellery was taxed in the hands of the assessee-firm and why not in the hands of the respective partners - The partners have declared the value of ornaments as per the respective balance sheet and that fact could have been verified from their assessment records - The assessee has informed the PAN numbers of those partners. Relying upon CIT Vs. Prafulbhai @ Rohitbhai J. Shah [2013 (7) TMI 116 - GUJARAT HIGH COURT] - in a situation when the jewellery belonged to different family members and it was a customary of owning the jewellery as permitted by the CBDT circular, the addition was deleted - the provisions of CBDT circular are required to be applied especially when the partners are subject to tax independently - In a situation when the unaccounted stock had been taxed by treating as taxed u/s 69B of IT Act, on one hand, and on the other hand the sale value of the stock was also taxed – the correct position ought to be that the difference between the two is required to be taxed in the hands of the assessee - Decided partly in favour of Assessee.
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