High Court dismisses Income Tax Appeal on Rule 46A affidavit rejection & Rs.2,89,693 addition for gold biscuits.

The High Court dismissed the Income Tax Appeal regarding the rejection of an affidavit under Rule 46A and the addition of Rs.2,89,693/- on account of two gold biscuits. The appellant failed to provide adequate evidence to support his claims, and the court found the authorities' findings to be factual, not raising any legal question for consideration.

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Issues:
1. Rejection of affidavit under Rule 46A of the Income Tax Rule, 1961.
2. Addition of Rs.2,89,693/- on account of two gold biscuits in the hands of the appellant.

Issue 1: Rejection of Affidavit under Rule 46A:
The appellant contested the rejection of an affidavit filed by Shri Ashok Kumar Varshney under Rule 46A of the Income Tax Rule, 1961. The appellant argued that the affidavit should have been admitted, citing previous judgments. However, the court found that the appellant failed to provide sufficient cause for not producing the affidavit before the Assessing Officer (A.O.). The court upheld the rejection, emphasizing that Rule 46A (1) mandates showing sufficient cause for not producing evidence before the A.O.

Issue 2: Addition of Rs.2,89,693/- on Account of Two Gold Biscuits:
The dispute centered on the ownership of two gold biscuits found in the appellant's locker. The authorities did not accept the appellant's explanation that the gold belonged to his sister. The appellant's counsel argued that the gold was intended for the sister and explained the source of investment. However, all authorities, including the AO, CIT (A), and ITAT, found inconsistencies in the appellant's submissions. The court noted that Shri Ashok Kumar Varshney did not claim ownership of the gold biscuits during the search operation. The court held that the appellant failed to provide sufficient evidence to support his claim. The court concluded that the findings of the Income Tax authorities were factual and did not raise any legal question for consideration. Consequently, the court dismissed the Income Tax Appeal.

In summary, the High Court dismissed the Income Tax Appeal concerning the rejection of an affidavit under Rule 46A and the addition of Rs.2,89,693/- on account of two gold biscuits, as the appellant failed to provide sufficient evidence to support his claims, and the authorities' findings were deemed factual, not raising any legal questions for consideration.

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