1998 (9) TMI 121

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..... lth for Rs. 5,98,600. The assessment was completed on Rs. 23,94,620. The following additions to the net wealth were sustained in appeal:- (i) Enhancement in the value of jewellery to the tune of Rs. 13,15,355 as against Rs. 1,84,070 shown by the assessee; (ii) Disallowance of liability in respect of loan taken from bank against the security of fixed deposit - Rs. 1,12,385. 3. Shri Salil Aggarwal, learned counsel for the assessee appeared before us. It was contended that the jewellery was valued by an approved valuer. Reference was made to the clarification given by the C.B.D.T. in this regard. In view of that clarification, it was contended that no penalty can be levied if the value declared by the assessee is in accordanc .....

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..... ery in question had the potentiality of appreciation to that extent, within a span of few months. Price cannot jump from Rs. 63,875 to Rs. 11,95,100 within eleven months under the normal circumstances. Definitely, there appears to be some subterfuge resorted to by the assessee to avail the tax benefit. It is the obligation of every citizen to pay the taxes honestly without resorting to subterfuges. There is behind Taxation Laws as much moral sanction as is behind any other welfare legislation. We recollect the of quoted dictum of Lord Green, MR :- "It scarcely lies in the mouth of the taxpayer who plays with fire to complain of burnt fingers." The matter needs to be decided on the conspectus of factual details. We find that in the order .....

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..... Within such a short time, the value cannot increase from Rs. 63,875 to Rs. 11,95,160. No exceptional circumstances were brought to our notice, for justifying the enhancement of value to that extent within such a short period. A fact cannot be altered by the hundred texts. It is pertinent to note that the assessee accepted this valuation for the Income-tax purposes. 10. In regard to the claim of liability of Rs. 1,12,285 against FDR, it was contended that the assessee was not aware of the correct legal position. The claim made was bona fide. As such no penalty can be levied. We find from records that the assessee was represented by Shri R. Ganesan, who is an eminent counsel. Therefore, the argument of the assessee on this count is not tena .....

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