1999 (5) TMI 79 - AT - Income Tax

Issues Involved:
1. Valuation of Gold
2. Year of Acquisition of Gold
3. Credit for Income Shown by Family Members
4. Addition of Rs. 20,000 to Shri Dalu Guruji
5. Addition of Rs. 20,00,000 based on Dy. CIT Communication
6. Addition of Rs. 66,50,000 for Acquiring Tenancy Rights

Summary:

1. Valuation of Gold:
The first issue is against the AO's determination of the value of gold at Rs. 10,57,540 as opposed to Rs. 9,60,786 claimed by the assessee. The Tribunal upheld the AO's valuation, dismissing the assessee's appeal on this ground, stating that the acquisition of gold should be presumed to be made in the year of detection.

2. Year of Acquisition of Gold:
The second issue relates to the AO rejecting the assessee's claim that the gold was acquired during the asst. yrs. 1994-95 and 1995-96, treating it instead as acquired in 1997-98. The Tribunal found no merit in the assessee's claim and dismissed the appeal, agreeing with the AO's assessment.

3. Credit for Income Shown by Family Members:
The third issue concerns the AO not allowing credit for the income shown by family members for the asst. yr. 1996-97 amounting to Rs. 8,70,000. The Tribunal found that the AO did not provide any reason for disallowing the claim and noted that the returns were filed after the date of search but were accompanied by advance tax and TDS. The Tribunal allowed the assessee's claim on this ground.

4. Addition of Rs. 20,000 to Shri Dalu Guruji:
The fourth issue is the addition of Rs. 20,000 by the AO, holding that the amount was given to Shri Dalu Guruji. The assessee did not press this ground, and the Tribunal dismissed the appeal on this ground as not pressed.

5. Addition of Rs. 20,00,000 based on Dy. CIT Communication:
The fifth issue involves the addition of Rs. 20,00,000 based on a communication from the Dy. CIT, Special Range-I, Nagpur. The Tribunal found that the addition was made without any basis, as no documentary evidence or opportunity for the assessee to respond was provided. The Tribunal deleted the addition, allowing the appeal on this ground.

6. Addition of Rs. 66,50,000 for Acquiring Tenancy Rights:
The sixth issue concerns the addition of Rs. 66,50,000 for acquiring tenancy rights of a flat in Matunga, Mumbai. The Tribunal found that the AO's conclusion was based on suspicion and letters from a broker, without concrete evidence. The Tribunal noted the broker and trust denied any payment of Pagadi or deposit and found no material evidence to support the AO's addition. The Tribunal deleted the addition, allowing the appeal on this ground.

Conclusion:
The appeal by the assessee is allowed in part, with the Tribunal providing relief on issues concerning credit for income shown by family members and the additions based on Dy. CIT communication and tenancy rights acquisition. The Tribunal upheld the AO's valuation and year of acquisition of gold, and dismissed the appeal on the Rs. 20,000 addition as not pressed.

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