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TMI Blog2020 (3) TMI 390X X X X Extracts X X X X X X X X Extracts X X X X ..... the introduction of gold of father into the business of assessee took place in the assessment years 2011-12 and 2012-13 only. In Mahindra Mahindra Ltd. [ 2018 (5) TMI 358 - SUPREME COURT] clearly held that unless the benefit accrued to the assessee is in nature of cash or money, section 28 has no application and in the absence of cessation of liability, section 41(1) has no application. What all that happened in this matter is that the assessee introduced the gold left behind by his father into his business and had shown the trade liability in his own name in the name of other family as a whole or individual legal heir. Such an act cannot be termed either as introduction of unaccounted or unexplained money into the capital or that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Income-tax Act ( the Act ). 4. The assessee is, therefore, before us in this appeal contending that the authorities below failed to appreciate the fact that neither section 28 of the Act nor section 41 of the Income-tax Act, 1961 ( the Act ) is applicable to the facts of the case, inasmuch as the gold introduced by the assessee into the business belonged to his father on whose death it was inherited by mother, brothers and sister of the assessee. 5. Learned AR submitted that both the authorities below proceeded on the basis of gold worth ₹ 45 lacs introduced into the business of the assessee though originally belonged to his father, but subsequently on death of father of assessee, such a liability ceased to exist and t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is father on 01.03.2012, 03.03.2012 and 17.03.2012 also vary as the rate on which the gold is claimed to have purchased does not tally with the gold rate on those dates. She further submitted that the assessee has been changing his version from time to time, inasmuch as initially he had shown as a creditor to himself which was disbelieved by Assessing Officer. 7. We have gone through the record in the light of submissions made on either side. It could be seen from the record, as pleaded by the assessee both before the Assessing Officer and CIT(A), the case of the assessee has been that his father died intestate on 15.05.1993 leaving behind five legal heirs and some gold bars; that the assessee commenced his business in the latter half o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uced into the business of assessee ceased to exist or not. According to assessee, he alone is not entitled to inherit the entire estate of his decease father, but along with him, four other legal heirs are there upon whom the estate of his deceased father devolves. On this aspect, the assessee produced before the CIT(A) affidavits of other legal heirs and we have gone through such affidavit to be found from page 47 to 56 of the paper book, wherein, wife and children of late Dharam Chand Garg (father of assessee) stated in unequivocal terms that the deceased left behind five legal heirs and the deceased owned a debt of ₹ 45 lacs from M/s. Sai Jewels on account of sale of goods to them. This particular aspect is not in dispute. Further, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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