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2023 (2) TMI 172 - AT - Income TaxAddition u/s 69 - unexplained jewellery - declaration by the assessee’s husband in the statement recorded at the time of search of offering a sum as undisclosed income on account of investment in jewellery, there was no declaration in the return of income filed in response to the notice issued under section 153C - HELD THAT:- The standard of proof required cannot be equal to proof on preponderance of probability as is required in judicial proceedings. Search was conducted in the case of the assessee’s husband. In the statement recorded u/s 132(4) of the Act, the husband of the assessee admitted that the jewellery belonged to him and the assessee and some of the jewellery was received by the assessee during her marriage and the rest was purchased over a period of several years. The admission of the assessee’s husband in a statement u/s 132(4) of declaring undisclosed income cannot bind the assessee. Therefore, the case has to be decided on the basis that there was no admission of undisclosed income whatsoever. The evidence with regard to bills in respect of gold and diamond jewellery as on 03.08.2009 of a value of Rs.11,88,206/- was also filed by the assessee. It is also seen that the assessee has given details of the income declared by her over a period of 16 years and the income declared is to the tune of Rs.4.78 Crores. Considering the status of the family and other surrounding circumstances including the statement of evidence given by the assessee, the possession of jewellery worth Rs.28.54 lakhs have to be accepted. Admittedly, the jewellery was purchased in the year 2009 and this evidence has been completely ignored by the Revenue authorities. All the facts cumulatively considered, proves the credit worthiness of the assessee to buy the jewellery out of the taxed incomes. Hence, even by the process of telescoping the income with the source of acquiring jewellery, the explanation of the assessee needs to be accepted. The impugned addition made by the Revenue authorities cannot be sustained. Accordingly, the same is directed to be deleted. - Decided in favour of assessee.
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