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2017 (1) TMI 817 - AT - Income TaxUnexplained cash credit - addition u/s 68 - Held that:- In the statement of facts the revenue has repeated the observations of the A.O. There is no dispute that the purchase of gold ornaments was duly supported by purchase bills which was subsequently confirmed by M. Ruhi Exports. It is also not in dispute that subsequently the assessee had sold the gold so purchased. We fail to understand, when the A.O. has accepted the capital gains then he has also accepted the cost of purchase, then how can he treat the purchase amount as unexplained cash credit. Considering the facts in totality, we do not find any merit in this grievance of the revenue and the same is dismissed. Addition made u/s. 69 - Held that:- After carefully perusing the relevant documentary evidences field before us in the form of a paper book, we find that the amounts shown to have paid by Shri Ankit C. Shah and Shri C.S. Shah (HUF) are duly reflected in their respective pass book. It is also an undisputed fact that there was a typographical error in respect of the dates of payment. It is also true that Shri C.S. Shah (HUF) has paid the amount on three different dates although the A.O. tried to find out the payment of ₹ 9,00,050/- as a total figure. Thus we do not find any merit in this grievance of the revenue and the same is dismissed. Capital gain - possession of the impugned gold ornaments sold during the year under consideration - Held that:- There is no dispute that the assessee was showing 1238.67 gms of gold from 1993-94. It is also not in dispute that in the year 2006-07, the assessee had purchased gold weighing 3417.64 gms. Merely, because the sale bills had two different addresses of the assessee, the same cannot be brushed aside lightly. More over as find from the findings of the First Appellate Authority, both the addresses are in fact of the same residential flat. Since the capital gains have arisen from the gold sold during the year the acquisition of which have been successfully explained by the assessee, we do not find any merit in the impugned grievance of the revenue and the same is dismissed.
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