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2017 (4) TMI 1185 - AT - Income TaxUnexplained cash payment - Addition relied on statement and figures mentioned in the seized document found during the course of search - Held that:- It is seen that against the figure of ₹ 35 lakhs, cheque amounts have been mentioned and so the break up amounts have also been mentioned on the back side of the seized documents which is also verifiable from the bank statements/books of accounts. On further perusal of ledger a/c submitted by the Ld AR it is also seen that the amount of ₹ 35 lacs was given by the assessee to M/s Megha Realmart Pvt Ltd. by cheque which is evident from the copy of ledger account of the assessee in the books of M/s Megha Realmart Pvt. Ltd. The Assessee has jgiven ₹ 35 lacs to M/s Megha Realmart Pvt Ltd. on 20.01.2011 by cheque out of which ₹ 25 lacs is transferred to his loan account and ₹ 10 lacs was adjusted against the share capital issued to the assessee. It is also a fact that for making this addition, AO has simply relied on the sworn statement only. To corroborate his findings, AO has also not brought on record any evidence to prove that assessee had made cash payment of ₹ 35 lacs instead of payment of payment by cheque as claimed by the assessee. - Decided against revenue Unexplained investment in silver articles - AO noted and accepted the assessee’s explanation that gifts of silver articles during social functions and occasions of birth of children etc are customary in Indian families - Held that:- It is not in dispute that these silver items especially given the nature of these items in terms of coin, trays, utencils, etc are generally given as gifts on various social and other family occasions/functions. However, in terms of reasonableness of such gifts which can be given or accepted, there cannot be any straight jacket formula. It all depends upon the facts and circumstances of each case. The onus is on the assessee to come out with the plausible explanation in this regard as the silver articles have been found in his possession. However, in absence of the same, the AO taking into consideration the social and financial standing of the family has arrived at 50% which we find just and proper. In light of above, the additions made by the AO is sustained and the order of the ld CIT(A) is set aside. - Decided against the assessee.
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