2013 (6) TMI 893 - AT - Income Tax

Summary

Issues involved:
The judgment involves cross appeals filed by the assessee and the revenue against the order of the learned CIT(A)-I, Ahmedabad for the assessment year 2007-08, concerning the addition of unexplained jewellery found during a search operation.

Details of the Judgment:

Issue 1: Disputed Jewellery Valuation
The AO accepted part of the explanation provided by the assessee regarding the jewellery found during the search operation but made an addition of a significant amount. The CIT(A) confirmed part of the addition and deleted the rest, leading to appeals from both parties.

Issue 2: Benefit of Circular No.1916
The assessee claimed that the benefit of Board Circular No.1916 should be extended to other family members as well, apart from the jewellery purchased by the assessee. The AO had allowed the benefit only to the assessee, leading to a dispute.

Judgment Details:

Issue 1: Disputed Jewellery Valuation
The CIT(A) allowed additional benefit to the assessee based on the valuation report and Will of Virbalaben, the mother-in-law of the assessee, for jewellery found in specific locations. The tribunal upheld this decision, stating that the objection raised by the AO regarding the valuation report not matching the items found was not valid. The tribunal emphasized that the jewellery's ownership could not be disregarded solely because no wealth tax return was filed by Virbalaben.

Issue 2: Benefit of Circular No.1916
The tribunal rejected the assessee's claim for extending the benefit of Circular No.1916 to other family members, stating that the benefit could only be allowed for jewellery belonging to those specific individuals. The tribunal upheld the CIT(A)'s decision on this matter.

In conclusion, the tribunal dismissed both the assessee's and the revenue's appeals, upholding the CIT(A)'s order. The judgment was pronounced on 21/06/2013.