2003 (7) TMI 10 - HC - Income Tax

Unexplained investment - Whether, Tribunal was justified in sustaining the addition of 15 tolas gold jewellery in the hands of the appellants being treated as unexplained investment irrespective of the facts that affidavit furnished by the appellant was not disbelieved by the Tribunal? - In the interest of justice, we deem it proper that the Assessing Officer should verify from the wealth-tax return whether the jewellery in question has been disclosed in the wealth-tax return. If that has been shown in the wealth-tax return, that cannot be treated as unexplained investment in gold jewellery. It should also be seen that those return should be filed before the date of search. - In the result, we set aside the order of the Tribunal to the extent relating to the addition on account of 15 tolas of gold jewellery, treated as unexplained investment in the gold jewellery and remit the matter back to the Assessing Officer

Summary

The High Court of Rajasthan set aside the Tribunal's decision to add 15 tolas of gold jewellery as unexplained investment. The matter was remitted back to the Assessing Officer to verify if the jewellery was disclosed in the wealth-tax returns before the search date. If disclosed, no addition is warranted; if not, a fresh decision can be taken.