2013 (11) TMI 1779 - AT - Income Tax

Summary

Issues Involved:
Assessment of unaccounted investment in the form of jewellery u/s 69B for the assessment year 2008-09.
Application of Telescoping of unexplained investment against the income of the appellant group.

Assessment of Unaccounted Investment:
The appeal was filed against the CIT(A)'s order adding the value of jewellery seized during a search operation as unaccounted investment u/s 69B. The Assessing Officer valued the gold jewellery at Rs. 1100 per gram, totaling Rs. 16,76,180. The CIT(A) considered 500 grams as gifts received on marriage and other occasions, treating the balance as purchases from undisclosed sources. The appellant contended that the jewellery belonged to all family members, not just the individual, and cited CBDT Instruction No. 1916 to support the claim. The Tribunal allowed 1300 grams of gold for the family members, directing the Assessing Officer to apply the principle of telescoping for the remaining 223.8 grams.

Application of Telescoping Principle:
The appellant raised the issue of applying the principle of Telescoping of unexplained investment against the income of the appellant group. The Tribunal, after considering the arguments presented, allowed 1300 grams of gold for the family members and directed the Assessing Officer to determine the taxable income by applying the principle of telescoping for the remaining jewellery. The appeal was partly allowed for statistical purposes.

Separate Judgement:
No separate judgment was delivered by the judges in this case.