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2019 (10) TMI 1194 - AT - Income TaxUnexplained investment in Gold Jewellery u/s 69 - HELD THAT:- CIT(A) after examining the affidavit and evidence furnished and after calling for a remand report from the AO, accepted the assessee’s contention with regard to the gold received at the time of marriage and also in the possession of the father-in-law of the assessee. However, in respect of the gold allegedly belonging to the mother-in-law of the assessee Smt. E. Padmavathamma is concerned, he did not accepted the contention of the assessee as at the time of search, Smt. Padvavathamma was residing with her son at Kurnool and the gold belonging to her mother-in-law was in the locker at Kurnool. Since she was not residing with her son at Hyderabad, entire jewellery could not have been kept in the locker at Hyderabad. He therefore, confirmed the addition to the extent of ₹ 14,55,000/-. Though the learned Counsel reiterated the submissions made before the authorities below, we are not convinced with the ownership of the jewellery of Smt. E. Padmavathamma as the jewellery found at the time of search was without any corroborative evidence. Therefore, ground of appeal No.3 against such addition is rejected. Addition u/s 56(2)(vii)(c)(i) - shares were allotted to the assessee without any or valid consideration - HELD THAT:- A loan cannot be considered as a benefit received by the assessee without any consideration. In view of the above, what can be brought to tax is only the lease rental receivable by the assessee for the relevant financial year. The AO is therefore directed to compute the lease rental in the respective relevant A.Ys and bring it to tax. As regards amount as retained towards the TDS brought to tax as “income from other sources”, the addition to that extent is confirmed. Similarly in the A.Y 2012-13, it is only lease rental that is liable to be taxed. As regards the sale consideration of ₹ 24,17,976 is concerned, the assessee has claimed it to be sale consideration on sale of agricultural land. AO is therefore, directed to verify whether the said land was recorded was agricultural land both at the time of the purchase of the property and also at the time of the sale and if it is found to be recorded as agricultural land, then the sale consideration cannot be brought to tax in A.Y 2012-13. Therefore, the grounds of appeal for the A.Ys 2011-12 and 2012-13 against the additions are partly allowed for statistical purposes.
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