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2015 (7) TMI 80 - AT - Income TaxAddition to the income of the appellant in respect of 4 gold diamonds - Held that:- In the light of the rival submissions and the order of the Tribunal in the case of Income Tax Officer vs. Shri. Gopal Verma, Kanpur we find that the explanations furnished by the assessee in the instant case were examined by the Tribunal in the case of Shri. Gopal Verma, the Director of the assessee-company. Being convinced with the explanations of Shri. Gopal Verma, the Tribunal has deleted the addition made in his hands on substantive basis and there is no evidence on record suggesting that the order of the Tribunal was ever reversed. Therefore, no addition is called for in the hands of the assessee on the basis of same facts. There is no evidence that the appellant had made any investment in purchase of these diamonds. The diamonds were property of M/s. Om Enterprises and these findings have been given in the assessment of M/s. Om Enterprises. Shri Gopal Verma had nothing go do with these diamonds in his individual capacity. He was holding these diamonds in the capacity of the Director of Company. It was the onus of M/s Mansingh & Sons Jwellers (P) Ltd. to explain the source of acquisition of diamonds. The nature of possession in his hand was holding the company property in trust, thus legally no addition can be made in the hands of Shri. Gopal Verma. In the present case even on the basis of facts no addition was justified to be made in the case of Shri Gopal Verma because the source of acquisition of diamonds was clearly explained and same was verified by conducting survey at M/s Om Enterprises as well as by making inquiry by deputing ITI to Calcutta and also by making inquiries by the Assessing Officer from M/s. Om Enterprises. The addition made by the AO of ₹ 21,30,372/- in the hands of the appellant cannot be sustained and is directed to be deleted. - Decided against revenue.
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