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2016 (12) TMI 348 - AT - Income TaxAddition u/s 68 - unexplained possession of jewelry and cash - Held that:- Once the assessee has produced prima facie relevant material and documentary evidences of the entries in the balance sheet, then the onus shifts upon the AO for carrying out some kind of inquiry or verification of the evidences filed and explanation furnished. In the context of Indian social customs, the gifting of cash and jewellery from parents, grandparents, relatives, near and dear ones cannot be ruled out. The jewellery and cash received at the time of marriage for a woman is considered to be “Stridhan” which is even recognized under law. Therefore, the presumption and pre-ponderance of probabilities goes in favour of the assessee that she was in possession of the jewellery and cash. The assessee's explanation and evidence have not been dislodged by the AO by bringing any contrary material on record. The AO has proceeded to make the entire addition u/s 68 of the Act simply on the basis of presumption and assumptions which has been confirmed by the ld. CIT(A). IThus the lower authorities have failed to carry out any inquiry or verifications to justify the various additions made u/s 68 of the Act. Accordingly, we reverse the order of ld. CIT(A) and direct the AO to delete all the additions. - Decided in favour of assessee
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