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2015 (5) TMI 894 - ITAT MUMBAI

2015 (5) TMI 894 - ITAT MUMBAI - TMI - Unaccounted cash - search and seizure procedings - Held that:- As during search statement of assessee’s mother Smt. Jashodaben Ravji Majethia from whose possession cash was found, was recorded. In the statement Smt. Jashodaben Ravji Majethia stated the source of cash of ₹ 8,50,000/- out of savings for a period of over 25 years. Since the daughter of Smt. Jashodaben Ravji Majethia Miss Banuben Ravji Majethia, aged 50 years was un-married, money was sav .....

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s of the assessee. - Decided in favour of assesse.

Unaccounted jewellery - Held that:- The jewellery was found in the cupboard of the mother kept in her room. During the course of preliminary statement itself the mother and sister of the assessee had owned the jewellery and explained the source of the same. The jewellery found is ladies jewellery and hence it cannot belong to the assessee. Further the assessee is a bachelor and hence no addition can be made in the hands of the assesse .....

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ledger accounts and bank entries, additions in respect of such credits cannot be made. Following the same reasoning given above in the A.Y. 2009-10, we do not find any reason to interfere in the order of ld. CIT(A) deleting the addition made on account of creditors.- Decided in favour of assesse. - I.T.A. No. 3772/Mum/2011, C.O. No. 192/Mum/2011, I .T.A. No.2220/Mum/2011, I.T.A. No.3773/Mum/2011 - Dated:- 10-4-2015 - Shri R.C. Sharma And Shri Sanjay Garg JJ. For the Appellant : Mrs. Ritika Agar .....

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/- made by the A.O. u/s 69A of the Income Tax Act, 1961 out of cash found during the search and also confirming the addition of ₹ 8,12,945/- made u/s 69-A of the Act on account of value of jewellery found during the search. The assessee is also aggrieved for making adhoc disallowance of 10% of motor car expenses as personal expense. 3. Rival contentions have been heard and record perused. There was a search and seizure at assessee s residential premises. During search, cash of ₹ 13,0 .....

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nfirmed the action of A.O. with regard to the addition of ₹ 6,72,358/-. 4. We have considered the rival contention and found that following statement of Mrs. Jashodaben Ravji Majethia, mother of the assessee was recorded during search u/s 132 of the Act:- Q. 4: Please confirm that cash of ₹ 13,02,240/- has been found at your premises at 1803, 18th floor, Trides Tower, Bhakti Marg, Mulund (W)_ Mumbai - 80 during the course of search u/s 132 of the I.T. Act, 1961 on 07.01.2009. Please .....

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o us are our savings for a period of over 25 years. Sir, moreover, 1 would like to add that my daughter who is aged 50 years and unmarried and I have saved the money keeping in mind for her future. My Husband is also aged 85-87 years and therefore looking to our old age and my daughter's condition, we have saved whatever is possible from our side. "Since these savings are made over a period of 20-25 years from my husband's income as well as my son's income which they themselves .....

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d of over 25 years. Since the daughter of Smt. Jashodaben Ravji Majethia Miss Banuben Ravji Majethia, aged 50 years was un-married, money was saved keeping in mind for her future of un-married daughter. As per the statement, husband of the assessee is also aged 85-87 years and therefore looking to the old age and her daughter s condition being un-married, the amount was saved for a period of last 20-25 years from her husband as well as from son s income. The explanation given by Smt. Jashodaben .....

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ladies jewellery and hence it cannot belong to the assessee. Further the assessee is a bachelor and hence no addition can be made in the hands of the assessee. The statement of Mrs. Jashodaben Ravji Majethia was recorded on January 7, 2009 during the course of search. Out of the same, question No. 3 and its reply is mentioned hereunder:- Q. 3: Please confirm regarding jewellery/silver/diamond as per valuation report of Shri Ganpatlal M Jain (Govt. approved valuer) of ₹ 16,57,3401- found a .....

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y of ₹ 30,100/- and silver utensils of 2 kg. I have five members in my family including my Husband Shri Ravji Valji Majethia aged (85-87 yrs), my two sons named (1) Shri Liladhar Ravji Majethia aged 44 years (2) Shri Haresh Ravji Majethia aged 40 years and one daughter names Ms Bhanuben Ravji Majethia aged 50 yrs. I received jewellery on different occasions such as marriage, birth IOJ children and other ceremonies: I had already stated in my preliminary statement that I have received 50 to .....

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e and gifts received on different occasions. Moreover the total quantity of jewellery found is very less. Therefore, request you to release the same. The above statement shows that the jewellery is only out of gifts and never purchased. 7. In view of the above discussion, there is no merit in adding the jewellery in the hands of assessee. 8. The A.O. also made addition u/s 68 of the Act in respect of creditors in the A.Y. 2009-10, which was deleted by the ld. CIT(A) after having following observ .....

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reflected in their regular bank account as well as the bank account of the appellant. There is no cash deposit before the issue of loan and these loans have been repaid. In these circumstances, just because the replies were not sent by creditor directly but through the assessee cannot be a ground for making disallowance. The, appellant had relied upon the following case laws: Addition u/s 68 Roshan Di Hatti vs. CIT (1977) 107 ITR 938 (SC) Hon Jehangir Gheesta vs. CIT (1961) 41 ITR 135 (SC) Expla .....

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ectric Co Vs CIT (152 ITR 507 (Del). Unless contrary material outweighs the material and evidence supplied by the assessee is brought on record contrary view cannot be taken by AO. Bhagwati Prasad Mishra V s CIT (1959 35 ITR 97 (Ori) Rejection of legitimate explanation of assessee by ignoring to consider important K.S. Kannan Kunhi Vs CIT (1969) 72 ITR 757(Ker) piece of evidence is an error in law. A.O. must being positive evidence on record proving explanation not valid. Sri Ram Jhabarmull (Kal .....

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(2003) 265 ITR 254 (Gau) Once assessee establishes that he received amount by account payee cheque, the assessee has proved creditworthiness of lender. Seth Textiles Vs ITA (2003) 80 TTJ (Mum Trib) 329 Pravin Colour Co. vs. ITA (1977) Taxation 48(6)-155 (bom) Addition u/ s. 68 could not be made as A.O. had not conducted any inquiry and also the assessee had furnished all relevant details, confirmations, details of cheques and affidavits etc. Veer Metals Vs CIT (1995) 51 TTJ (Del) Trib 132 DCIT v .....

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