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2020 (4) TMI 288 - AT - Income TaxUnexplained investment in gold and silver - assessee was in possession of 590 gms. gold and accordingly the value of the same at the relevant point of time has been added to the total income of the assessee after allowing 15% less towards alloy contents - HELD THAT:- Though the CBDT Instruction was not available at the relevant point of time, however, there is no mention in the said instruction that the same will apply retrospectively or prospectively. However, the when the AO completed assessment for the year under consideration, it was very much available with the department as the AO has passed assessment order on 31.12.1998 and the CBDT Instruction No.1916 is dated 11.05.1994. It is also pertinent to mention here that in the case of the assessee earlier as directed to drop the proceeding initiated vide order dated 21.09.2013, passed by the Authorised Officer, Special Court, Bhubaneswar in Confiscation Case No.4/2009. Further the Hon’ble High Court has observed that if the assessee is acquitted of the offence then the confiscated property is to be returned to him. So the natural corollary to this provision is that if there is no possibility of recording any conviction as in the case of death of the person affected and abatement of the criminal trial against him, a confiscation cannot be made as there is no possibility of the person affected being convicted for the offence under the P.C.Act. We are of the opinion that the addition made on account of possession of gold of 590 gms. worth of ₹ 2,17,350/- is not sustainable. Addition on account of possession of silver of 13 kgs. worth of ₹ 3,21,870/-, we have gone through the paper book at page 220 and found that the assessee was having 100 kgs. of silver since the year 1965. Therefore, it can safely be presumed that in the relevant assessment year the assessee must have 13 kgs. silver which he has already shown in the wealth tax return. Before us, ld. DR did not bring any cogent material on record to controvert the above facts. Accordingly, we direct the AO to delete the addition made on account of investment in gold and silver totaling to ₹ 3,21,870/-. Ground No.4 in the appeal of the assessee is allowed. Purchase of vehicles - Assessee explained that for purchase of the said vehicle the assessee has taken loan from his office and remaining amount has been paid from the bank on account of closure of term deposits and savings account - HELD THAT:- We find that the assessee has got sanctioned of ₹ 42,000/- from his office as loan for purchase of car, copy of which is filed in the paper book at page 5 and remaining amount has been collected from the bank on account of term deposits and savings bank, a certificate in this regard has been issued by the United Bank of India, copy of which is filed at page 6. In the assessment order, the AO has also accepted that the assessee has sufficient bank balance to meet out for purchase of car, however, did not accept the explanation of the assessee and added the same to the total income of the assessee. In our opinion, on perusal of the above documents placed before us in the form of paper book, we are satisfied that the assessee has accumulated money for purchase of car from his office as loan and from the bank after closing the term deposits and savings account. Therefore, the addition made by the AO on account of purchase of car and confirmed by the CIT(A) is directed to be deleted.
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