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2017 (7) TMI 804 - AT - Income TaxUnexplained investment - unexplained jewellery - Held that:- In view of the fact that assessee has received gold jewellery on occasion of his marriage which is confirmed by the persons who gifted the same and further looking to the family status of the assessee who is belonging to a business man family residing at Sainik Farms and wife of the assessee belonging to non-resident Indian family based in Nairobi and whose father is garment exporter and grandfather was in the Ministry of Himachal Pradesh, it is not unreasonable to have the quantity of gold in his possession. Further, it was unexpected to reject the contention of the assessee merely for non-filing of return of wealth tax as well as the statement of affairs under the income tax act when assessee is not legally obliged to. In view of this, we delete the addition made by the ld AO and reverse the order of Ld CIT (A). In the result ground of the appeal of the assessee is allowed. Disallowance of claim of deduction u/s 80C - nexus between income earned and income invested - Held that:- It is normal behaviour of an individual's private life that all incomes are amalgamated and spent. The Income-tax Act does not require that the investment in NSC should be made from the same amount which an assessee had earned by way of income. It is always open to an assessee to either spend the amount earned by him as an income which is more than the amount invested under section 80C. The investment in NSC can be said to be out of income of the previous year. See Rajkumar Dewan & Sons V CIT [2005 (2) TMI 80 - ALLAHABAD High Court ] We allow the claim of the assessee fully for deduction u/s 80 C of the act reversing the orders of lower authorities. - Decided in favour of assessee.
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