Section 132, 145 of Income Tax Act, 1961— unexplained cash and gold bars— In the instant case, AO made additions on account of unexplained cash and gold bars and CIT also upheld the additions on account of gold and cash found during the course of search proceeding and also rejecting books of accounts, holding that assessee is engaged in unaccounted sales and purchases of bullions and making addition by estimating gross profit ratio @ 1% on alleged business of unaccounted trading of bullion without any cogent basis.

Held that— we are of the view that the material found from an unconnected person cannot be added in the assessee 's hands when even the said person had not admitted that it relates to the assessee. Thus, no addition can be made on account of entries found from the premises of Gajmangal, merely on the basis of surmises and conjectures. Hence the additions made by AO and confirmed by CIT(A) are not sustainable and thus are ordered to be deleted. Resultantly, these grounds raised by the assessee stands allowed.[KHUSHPAT J. SHAH VERSUS DCIT CC 2 (4) , MUMBAI] [2018] 8 ITCD Online (52) [ITAT MUMBAI]