2023 (4) TMI 799 - AT - Income Tax

Unexplained investment in Silver articles of 22 kgs u/s 69B - Admittedly, the disputed silver articles weighing 22kgs was claimed to have been received by the appellant from her parents at the time of her marriage in 2004 - AR contended that the required details including bills and documents have been filed in support of such acquisition as evident from the fact that a reference of such document is made in the remand report of the AO - HELD THAT - It is evident from the Assessment Order of the Wealth Tax Officer ( WTO) made u/s 18(1)(c) Wealth Tax Act, 1957 in the case of appellant wherein the silver articles of 22 kgs have been assessed for the Assessment Year 2013-14, and continued in the following AY 2014-15 and AY 2015-16. Under the facts and circumstances, no addition would be called for the AY 2017-18 on account of investment in Silver Articles of 22kgs per se - Addition deleted - Decided in favour of assessee.

Summary

Issues Involved:
The issues involved in the judgment are:
1. Assessment order u/s 143(3) and compliance with mandatory conditions u/s 143/153D/153 of the Income Tax Act, 1961.
2. Addition of Rs. 10,01,500/- on account of jewellery u/s 69B of the Act.
3. Consideration of submissions and principles of natural justice.

Summary:
1. The appellant filed an appeal against the order of the Ld. Commissioner of Income Tax (Appeals)-5, Ludhiana dated 21.10.2019 for Assessment Year 2017-18.
2. The appellant raised grounds of appeal challenging the order passed by the Hon'ble CIT(A) and the action of the Assessing Officer in framing the assessment order u/s 143(3) without complying with mandatory conditions.
3. The Assessing Officer made an addition of Rs. 10,01,500/- on account of unexplained investment in Silver articles u/s 69B of the Act during the scrutiny proceedings 143(3)/153A.
4. The Ld. CIT(A) confirmed the addition based on lack of supporting bills/documents for the acquisition of silver articles weighing 22kgs.
5. The appellant contended that the addition was unjustified as the silver articles had already been assessed in previous years under the Wealth Tax Act, 1957.
6. After considering the arguments and evidence, the Tribunal held that the addition of Rs. 10,01,500/- was unjustified and deleted the same, finding the Ld. CIT(A) order to be infirm and perverse to the facts on record.

Separate Judgment:
There was no separate judgment delivered by the judges in this case.