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2015 (1) TMI 735 - AT - Income TaxAddition made u/s 69A - unaccounted jewelery - Held that:- In this case undisputed facts are that when the jewellary was seized by the Sales Tax Department, the company came forward and claimed ownership of the said jewellary as evident from the proceedings before the Sales Tax Authorities and the filing of the writ petition before the Hon’ble J&K High Court, wherein company D-Mines Trading Co. Pvt. Ltd was the petitioner. On the direction of the Hon’ble High Court, the company had furnished the bank guarantee and also paid the penalty amount imposed by the STA, for the release of the jewellary seized. When company had claimed ownership of the jewellary, mere possession of the same by the assessee at the time of its seizure by STA is immaterial as to determine the ownership of jewellary. To determine the ownership of jewellary necessarily the books of account of the company also needs to be examined. It is a fact that the AO had not verified as to whether the company DMines Trading Co. Pvt. Ltd had recorded in its books of account the transaction effected. Taking into account the facts of the matter, we are of the view that the issue is to be examined afresh by the AO, for the limited purpose, to verify as to whether, the jewellary seized is recorded in the books of account of D-Mines Trading Co. Pvt. Ltd. If the seized jewellary is recorded in the books of account of the company, necessarily assessee’s explanation that he is not the owner of the jewellary cannot be said to be false and therefore, addition u/s 69A of the Act is not warranted in his hands. - Decided in favour of assessee for statistical purposes.
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