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2022 (5) TMI 939 - AT - Income TaxAssessment u/s 153A - amount at the time of search u/s. 132(4) - incriminating material found during the course of search or not? - addition on the basis of alleged statement recorded in search which has even being retracted by the assessee - HELD THAT:- We find that the statement u/s. 132(4) has been recorded on 27.04.2012. The assessee has filed letter of retraction on 09.07.2012 before the ADIT(Inv.), Unit-II, Dehradun. We have endeavoured to examine any material that was found and seized with regard to disclosure of income and we find that no details about the seizure of any documents has been mentioned in the Assessment Order or the order of the Ld. CIT(A). The assessment has been concluded solely based on the statement recorded during the search which was also retracted before the authorities. Thus, we find that the assessment has been made solely based on the bare statement of the assessee. The various discrepancies confronted to him in the documents found at the time of search as mentioned in the Assessment Order have not brought to the fore. The revenue record is silent as to what are these documents and what are the discrepancies found and confronted to the assessee. Hence, keeping in view the retraction of the assessee, the circular of the CBDT, non-availability of the relevant seized material, judgments of the various Courts with regard to the validity of the statement and validity of the retraction thereof, we hereby hold that the addition made based on the statement u/s. 132(4) cannot be sustained. Unexplained cash u/s. 69A - AO held that the assessee has not furnished any evidence to prove the status of cash flow in the entire family between period 31.03.2013 to 26.04.2013 as on the date of search and the amount found at the premises was added as undisclosed income of the assessee - HELD THAT:- We find that the cash in hand of Rs. 14,06,524/- has been determined by the AO who however chose to treat the cash of Rs. 4,58,700/- as undisclosed is contradictory as no evidence was found or could be gathered that the amount of Rs. 14,06,524/- stands spent or used for incurring any expenditure or for any other purpose. Since, the cash in hand has not been in dispute in the absence of any evidence contra, no addition is called for. Undisclosed jewellery - HELD THAT:- We find that the assessee owns jewellery worth Rs. 60,000/- in the financial year 2006-07 which could prove that the assessee had jewellery of approximately 85 gms till the year 2007. The remaining 72 gms of jewellery has been acquired in a span of 5 years period which could be by the way of purchases or by the way of customary gifts. The gross total income of the assessee for Financial Year 2011-12 of Rs. 10,50,000/- and for the Financial Year 2012-13 of Rs. 7,00,000/-. The average price of the 72 gms of gold would be approximately Rs. 1,50,000/- over a period of five years. Keeping in view, the returned income and the general financial affairs of the assessee, customs & practices of the geographical area and in the special peculiar circumstances of the case, we hold that the assessee can be deemed to have acquired 72 gms of gold by purchase and customary gifts. The circular of the CBDT and the various judgments of the Courts consider upto 100 gms of gold to a male member. Hence, keeping in view the entire facts and circumstances and in peculiarities of the case, we direct that the addition made on this head is liable to be deleted. Appeal of assessee allowed.
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