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2012 (12) TMI 893 - AT - Income TaxUnexplained investment – Search and seizure u/s 132(1) - Addition on account of diamond jewelry - Found at the residence and from the bank locker – Assessee claimed most of the items were gifted / purchased from drawings Held that:- As the assessee had given the explanation with regard to all the another jewelleries found at the time of search along with the evidences and details as were available. Assessee has filed details of cheque payments for the purchase of jewellery and the bank statement along with the summary of purchases made through jewelers, date, cheque number and amount, right from the assessment year 2002-03 up to the date of search. There was no occasion for the CIT(A) to go into such a theoretical concepts laid down by various High Courts / Supreme Court, he should have confined himself to the findings given by the AO and the contentions of the assessee about the evidence and explanation furnished in support of jewellery found. Gifted jewelleries cannot be treated as unexplained as the same is duly supported by such corroborative evidence like gift certificate issued by the mother of daughter-in-law and photographs of marriages shown before the investigation unit. Issue decides in favour of assessee Addition on account of art work and painting - Unexplained investment – Search and seizure u/s 132(1) - Valuation of art work and painting - AO noted that some of the art works could not be explained properly by the assessee with regard to the source of acquisition – Held that:- There could be possibility that the assessee may have acquired certain painting at a very low cost either from a flea market or from abroad or by way of gift from friend or relative for which such a high valuation cannot be taken. Issue of unexplained investment in art works / painting is restored to the file of the AO for denovo adjudication. Issue remand back to AO
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