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2016 (11) TMI 1035 - AT - Income TaxAddition made on account of cash found at the time of search - Held that:- The Revenue authorities were duty bound to consider the aspect of source of cash claimed to be out of the withdrawal from banks and other means. It is noted from the perusal of the orders of the lower authorities that the assessee had submitted that total amounts of withdrawals during the last seven years by the assessee's family stood at ₹ 127.25 lakhs. Thus amount of cash found at the time of search of ₹ 6,36,900 is easily explained and covered therein. The apprehension of the lower authorities that there were huge expenses, other household expenses and marriage expenses which might have been made from these withdrawals is certainly not out of context but no evidences were found during the course of search indicating that entire withdrawals were exhausted in meeting household, marriage and other expenses. Thus assessee has duly explained the availability of cash found at the time of search out of the cash available on account of withdrawals made by the assessee and his family members in the current year as well as during the last seven years - Decided in favour of assessee Addition on account of unexplained investment in gold ornaments and diamond jewellery - Held that:- law does not permit to make entire addition on account of difference found in the jewellery recovered and the jewellery disclosed in wealth-tax returns/ books of account, in the hands of the assessee only. Under these circumstances, we find it appropriate to send this issue back to the file of the Assessing Officer with the direction that the Assessing Officer is permitted to make addition only with respect to the jewellery found from the assessee that too only for the amount which remains unexplained. The assessee is free to submit requisite details and documentary evidences to explain the source of the jewellery found from his possession. The assessee is also free to submit before the Assessing Officer, copies of judgments and Central Board of Direct Taxes circular which have been relied on before us to explain the jewellery found from its possession
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