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2016 (4) TMI 249 - AT - Income TaxEstimation of watches - estimation of on average cost - search and seizure operation - Held that:- In the impugned order the withdrawals of the assessee is sufficient in the previous assessment years and assessee has also purchased some of the watches over a period of time from his personal drawings and also some watches were received by him on various occasions from his friends and relatives as gift. After going through the impugned order, we are of the considered view that the estimation made by the AO on the cost of 50 wrist watches found during the search and seizure operation is on the assumption and presumption basis and without supporting any evidence and hence, is not sustainable in the eyes of law. Secondly, the estimation made by the AO on average cost is also baseless and without any evidence and is not judicious. Subsequent to such estimation the AO has proceeded to estimate the 50 watches based on average cost of 25 watches which is essentially estimated over earlier estimation. Thus there is no basis of estimation of 50 watches of ₹ 1,00,64,000/- in spite of the fact that he himself accepted the withdrawal made by the assessee during the block period of around ₹ 3.5 Crores which is over and above the contribution made towards the LIC Premium etc. Keeping in view of the facts and circumstances explained above, we are of the considered view that Ld. CIT(A) has rightly deleted the addition in dispute by passing a well reasoned order, which does need any interference on our part, hence, we uphold the same by dismissing the Appeal filed by the Revenue. - Decided against revenue
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