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2019 (5) TMI 699 - HC - Income TaxPerversity of order of tribunal - reliance of wrong certificate of CA - taxability of pledged gold as income u/s 28(iv) - huge stock of gold in the possession of the assessee - assessee attributed stock of gold to inheritance from his grandfather who died in 1997 - HELD THAT:- We agree with their contentions. It is indeed perverse. In paragraph 4 of the impugned order the tribunal has narrated that in the year ending 31st March 1997 the audited statement of accounts of Khagendranath Nandi, the assessee’s grandfather declared that he had pledged gold weighing 927.17 gms. This is even less than 1 kg. Then it goes on to rely on a chartered accountant’s certificate that as on 31st March 1997 the gold in the custody of the grandfather was 27,927.17 gms. or about 28 kgs. The contradiction between the grandfather’s audited accounts and the chartered accountant’s certificate is so glaring that any reasonable adjudicator would have straightway discarded that certificate as false and fraudulent and taken steps against the chartered accountant. On the contrary this was accepted and acted upon by the tribunal which came to the finding that this quantity of gold was indeed pledged gold which become the property of the assessee. The question of law whether the pledged gold is taxable as income u/s 28(iv) is become secondary. We have no hesitation in setting aside this order of the tribunal dated 23rd December 2016. We remand the above issue back to the tribunal to make a proper finding on facts on it upon hearing the parties, by a reasoned order. The tribunal will then decide the question of law arising therefrom with reference to section 28(iv). The tribunal will pronounce its decision within three months of communication of this order. We also make it clear that our observation above are to be taken as tentative and the tribunal will be at liberty to draw its own conclusion in the matter.
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