TMI Blog2000 (8) TMI 234X X X X Extracts X X X X X X X X Extracts X X X X ..... of alleged unexplained investment in gold ornaments. There was a search in the premises of the assessee under s. 132 of the IT Act. In the residence of the assessee cash of Rs. 5,457 and gold ornaments weighing 770.300 gms. and gold bar weighing 5 tolas valued at Rs. 2,27,214 were found, out of which gold ornaments valued at Rs. 1,30,919 (including primary gold) were seized. The AO considered the explanation offered by the assessee and held that gold ornaments of 505 gms. were acquired by the assessee out of his undisclosed income. Accordingly, a sum of Rs. 1,22,500 was brought to tax. As stated earlier the CIT(A) gave a relief of Rs. 97,500 out of this addition, thus in effect confirming an addition of Rs. 25,000 in respect of gold stated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essee gold ornaments and utensils as mentioned in the affidavit on various occasions. The learned counsel for the assessee in this context refers to the CBDT Instruction No. 1916, dt. 11th May, 1994, reported in (1994) 122 Taxation (St.) 98 according to which in the case of a married lady who is not assessed to wealth-tax, gold ornaments to the extent of 500 gms. should not be subject to seizure. Similarly in respect of each unmarried lady and a male member in the family, limits are prescribed at 250 gms. and 100 gms. respectively. The learned counsel has relied on certain decisions of the Tribunal, Ahmedabad Bench in the case of Shri Bharat J. Patel vs. Asstt. CIT (Inv.). In ITA No. 3541/Ahd/1990, dt. 16th Jan., 1996, and in the case of As ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed is in respect of an addition of Rs. 32,000 made by the AO stated to be repayment of loan instalment made out of undisclosed sources by the assessee. The assessee constructed a house property at No. A/19, Amidhara Co-op. Housing Society Ltd. in the name of his wife Smt. Anilaben. The investment came to Rs. 88,200. The assessee had taken a loan of Rs. 50,000 from Bharat Co-op. Bank and the balance amount was taken from the amount received on maturity of pigmy account and insurance commission account. The repayment of instalment was stated to be out of loans taken from 5 parties. All these 5 parties when examined by the AO stated that they had advanced money to the assessee's wife. Since the repayments were not recorded in the assessee's ow ..... X X X X Extracts X X X X X X X X Extracts X X X X
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