Genuineness of jewellery sale requires independent evidence; purchaser affidavit alone was insufficient and matter was remanded.

Declaration of jewellery under the Voluntary Disclosure of Income Scheme established possession and acquisition, but it did not by itself prove the genuineness of the later sale. An affidavit from the purchaser was held insufficient unless supported by independent documentary evidence, and the burden remained on the assessee to prove actual sale and receipt of consideration. The revenue was not required to prove continued possession after the alleged sale. Earlier group orders were not treated as conclusive because each case required independent examination. The matter was remanded to the Assessing Officer to verify the genuineness of the jewellery sale afresh after giving due opportunity to the assessee.

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Issues: (i) Whether the alleged sale of jewellery shown by the assessee to the purchaser was a genuine transaction or an accommodation entry warranting addition, and whether the matter should be finally deleted or sent back for fresh verification.

Analysis: The declaration of jewellery under the Voluntary Disclosure of Income Scheme established possession and acquisition of the jewellery, but it did not by itself prove the genuineness of the subsequent sale. The affidavit of the purchaser was treated as insufficient standing alone unless supported by independent documentary evidence. The burden remained on the assessee to prove the actual sale and receipt of consideration, and the revenue authorities were not required to establish continued possession of the jewellery after the alleged sale. Earlier orders in other matters arising out of the same group were not treated as conclusive because the High Court had specifically required an independent examination in each case.

Conclusion: The issue was not finally decided on merits and the matter was remanded to the Assessing Officer to verify the genuineness of the jewellery sale and decide afresh after giving due opportunity to the assessee.

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