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Ownership of bronze Nataraja idol and its pedestal, liability under section 69A of the Income-tax Act, burden of proof, relevance of documents, presumption of ownership, justification of adding value to income. Analysis: The case involved the ownership of a bronze Nataraja idol and its pedestal, leading to a dispute regarding the liability of the assessee under section 69A of the Income-tax Act. The Customs authorities found the idol in the possession of the assessee, who claimed to be a representative of the State Trading Corporation of Sikkim. The Tribunal presumed the ownership of the idol to be with the assessee due to lack of evidence to the contrary and his involvement in sending the idol out of India without proper permission. The Tribunal allowed the appeal by the Department, adding the value of the idol to the assessee's income. The primary issue revolved around whether the assessee could be deemed the owner of the idol and its pedestal under section 69A. The assessee contended that the idol belonged to the Chogyal of Sikkim, as supported by a letter addressed to the Assistant Collector of Customs. The High Court emphasized that possession alone does not establish ownership, and in this case, the documents indicated the Chogyal's ownership. The Court highlighted the importance of verifying the ownership claim with original documentation, which was not done in this case. Therefore, the High Court ruled in favor of the assessee, stating that there was no basis to hold him liable for the value of the idol. The burden of proof was a crucial aspect of the case. The Tribunal's decision to shift the burden onto the assessee to prove non-ownership was deemed erroneous by the High Court. The Court emphasized that the assessee had provided evidence supporting the Chogyal's ownership, including relevant documents, which were not appropriately considered by the Tribunal. The Court distinguished this case from precedent where the presumption of ownership was not rebutted, highlighting the significance of the presented evidence in determining ownership. In conclusion, the High Court held that the Tribunal erred in presuming the assessee's ownership based solely on possession and adding the value of the idol to his income. The Court emphasized the need for proper consideration of evidence and documentation to establish ownership under section 69A. Therefore, the Court ruled in favor of the assessee, negating the addition of the idol's value to his income.
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