Unexplained jewellery and cheque gifts: Tribunal deleted both additions where prior facts were identical and donor-source linkage was not proved.

Unexplained jewellery addition was deleted because the facts were identical to connected matters already decided by the Tribunal for the same assessment years, and that earlier deletion was followed. Alleged unexplained gifts received through cheques were also deleted because the gifts were made at the time of marriage, the cheques were honoured, and the Department failed to show that the cash deposited in the donors' bank accounts originated from the assessee; on those facts, the donee was not required to explain the donors' source of funds. Both additions were therefore not sustained and the Department's appeals failed.

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Issues: (i) whether the additions made on account of unexplained jewellery were liable to be sustained; (ii) whether the additions made in respect of gifts received through cheques were liable to be sustained.

Issue (i): whether the additions made on account of unexplained jewellery were liable to be sustained.

Analysis: The issue was identical to one already decided by the Tribunal in connected matters relating to another sister of the assessee for the same assessment years. As the facts and circumstances were stated to be identical and there was no dispute on that score, the earlier deletion of the jewellery addition was followed.

Conclusion: The addition relating to unexplained jewellery was not sustained and the assessee succeeded on this issue.

Issue (ii): whether the additions made in respect of gifts received through cheques were liable to be sustained.

Analysis: The gifts were received through cheques at the time of marriage, and the cheques were honoured by the issuers. The Department failed to produce material showing that the cash deposited in the donors' bank accounts had flowed from the assessee, and the donee could not be required to explain the source of the donors' funds on these facts.

Conclusion: The addition in respect of the gifts was not sustained and the assessee succeeded on this issue.

Final Conclusion: The additions for both unexplained jewellery and alleged unexplained gifts were deleted, and the Department's appeals failed.

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