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2023 (4) TMI 694 - ITAT DELHIAddition u/s 69A r.w.s 115BBE - unexplained gold jewellery found at the time of search - Certain documents were seized from the residence of the assessee which represented vouchers for sale of old jewellery made by the assessee and her family members - HELD THAT:- Facts on record show that in response to summons u/s 131(1A) M/s Arjun Traders submitted its reply along with copy of Income tax Return, computation of income, balance sheet, Profit and Loss Account along with all Annexures for A.Ys 2016- 17 and 2017-18 along with copies of all bank account statements from 01.04.2016 to 30.09.2016 along with copy of stock register and copy of ledger account of purchase and sale. With these evidences on record submitted before the Investigation Wing, it can be safely presumed that M/s Arjun Traders is a regular assessee. Therefore, it was incumbent upon the AO to make direct enquiries from the officer of M/s Arjun Traders if it did not appear before the AO during the assessment proceedings. AO has questioned the deposits made in the bank account of M/s Arjun Traders. We fail to understand how the assessee is responsible/answerable to the transactions made by an unrelated party in its bank accounts. Interestingly, on similar facts, the AO has also made addition in the case of sale of jewellery to Assure Jewels Pvt Ltd. where a person appeared before the AO and in the case of M/s Arjun Traders, none appeared. Nothing prevented the AO to force the attendance of M/s Arjun Traders since the AO has all the powers vested with that of a court u/s 131 of the Act. As mentioned elsewhere, the assessee cannot be asked to explain the bank transactions of an unrelated party. Evidences in the form of confirmation, books of account, stock register and ledger account along with bank statement cannot be brushed aside lightly and considering these evidences, we do not find any merit in the impugned addition made u/s 69A - We direct the AO to delete the addition - Decided in favour of assessee.
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