2000 (8) TMI 234

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.... in respect 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 ....

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..... These facts have been explained by the assessee at the time of search and is also supported by the affidavits of Smt. Shantaban B. Acharya, mother of Smt. Anilaben M. Dave and Shri Chandrakant S. Dave, brother of the assessee. These affidavits indicate that the assessee's wife got by inheritance various gold ornaments and silver utensils on the occasion of her marriage and on other occasions. The assessee's elder brother has given the affidavit indicating that his late father has given to the assessee 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 accord....

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.... family. This has to be considered along with the possibility of the gifts received by the assessee and his children from his father and other relations on various occasions. Considering the social status of the family and also the customary practice prevailing in the community to which the assessee belongs, we are of the view that addition in respect of ornaments of 313 gms. attributed to the assessee and his children is also unwarranted. 5. Another ground of appeal which remains to be considered 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 th....