9911796707
TMI Blog2001 (11) TMI 240X X X X Extracts X X X X X X X X Extracts X X X X ..... diction. Accordingly, the ground Nos. 1 and 2 raised by the assessee are rejected. 4. Ground No. 3 in assessee's appeal is against the addition of Rs. 1,79,969 treating the gold jewellery as unexplained. 5. The learned authorised representative submits that the jewellery weighing 692.270 gms. was found at the time of search on the assessee, from the bedroom, locker and on person of Smt. Saroj Devi, wife of the assessee. The assessee has claimed that all these items are disclosed jewellery of his wife in her income-tax and wealth-tax returns as well as under VDIS. The AO, however, considered jewellery 248 gms, as explained and balance jewellery weighing 444.27 gms, the value of which was worked out at Rs. 1,79,969, as unexplained and treated the same as undisclosed income of the assessee in view of the statement given at the time of search by the assessee's wife. The learned authorised representative further submits that the authorities below have erred in not considering the factum of disclosure of jewellery in the wealth-tax returns as well as under VDIS, for which the CIT has issued a certificate. The disclosed jewellery, therefore, could not have been brought to tax as undiscl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... old jewellery under VDIS for which the CIT, Jaipur, has issued a certificate under s. 68(2) of the Finance Act, 1997, on 20th March, 1998. The Department has neither revoked the said certificate, nor cancelled any of the wealth-tax assessment, for which the said Smt. Saroj Devi has disclosed her gold jewellery. In her statement at the time of search, she also did not state about the total jewellery possessed by her. Even if there were certain infirmities in her statement taken at the time of search, the correct facts that more jewellery, as informed by the assessee belonging to her and accepted by the Department, cannot be lost sight of even if the items tally was not available, as such infirmity may be because of several reasons, including mixing of jewellery at the time of inventorisation, conversion, etc. However, the fact remains that the jewellery found was of Smt. Saroj Devi and the same was much less than her disclosed jewellery. No addition on account of the disclosed jewellery of Smt. Saroj Devi could have been made as undisclosed income in the hands of the assessee. The AO and the CIT(A) appear to have sustained the addition on the basis of suspicion alone. Suspicion howe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ave carefully considered the rival submissions of the parties, perused the material available on record, including the written submissions filed by the learned authorised representative and the decision relied upon by him. We find that the jewellery under sale was a disclosed jewellery of assessee's HUF and his wife, Smt. Saroj Devi. The CIT, Jaipur, has accepted the said disclosures of Shri Ashok Kataria HUF and his wife, Smt. Saroj Devi Kataria to be a valid disclosures and issued certificates under s. 68(2) of the Finance Act, 1997, on 9th March, 1998, and 20th March, 1998, respectively. The valuation reports of jewellery disclosures were also filed along with the disclosure made by the assessee's HUF and his wife after verification of the existence of the jewellery. The certificates issued by the CIT, Jaipur, have not been withdrawn. The sale bills are also in the names of these two persons and have been credited to their respective accounts. Neither any material was found or brought on record by the AO that there has been laundering of undisclosed income, nor it was found as a result of search from which it could be said that the appellant gave cash for arranging sale bills or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ny investment, which was not recorded in his books. He, therefore, submits that the addition made by the AO and confirmed by the CIT(A) should be deleted. 14. On the other hand, the learned Departmental Representative supported the orders of the authorities below on this account also. 15. After considering the rival submissions of the parties and perusing the material available on record, we find that this issue is covered by the decision of this Bench in the case of Shri Kunti Lal Kataria vs. Dy. CIT in ITSSA No. 19/Jp/2001, dt. 6th Nov., 2001 in favour of the assessee vide para 13 of the said order. Accordingly, the addition of Rs. 23,607 is, therefore, directed to be deleted. 16. Ground No. 6 in assessee's appeal and ground No. 3 in Revenue's appeal are with regard to the unexplained marriage expenses. 17. The learned authorised representative submits that the marriage of assessee's daughter Ms. Amita was solemnised on 21st Feb., 1994. The assessee has shown withdrawals towards marriage expenses at Rs. 70,000. Besides this, the deposit of Rs. 24,472 in the account of Ms. Amita lying in the books of M/s Swastik Udyog and Rs. 10,130 in the books of M/s Swastik Products were al ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bank account, shares and other deposits are duly reflected in the balance sheet filed with the first return for the asst. yr. 1995-96, therefore, these are the disclosed investments and hence the addition made by the AO and confirmed by the CIT(A) is beyond the scope of Chapter-XIV-B and, accordingly, it should be deleted. 22. On the other hand, the learned Departmental Representative supported the orders of the AO and the CIT(A) on this account also. 23. After hearing the rival submissions of the parties, pursuing the material available on record and in the absence of any contrary material the additions so made are found to be beyond the scope of assessment under Chapter XIV-B of the IT Act. The AO, therefore, is not justified in treating the same as undisclosed income of the assessee for the block period. Accordingly, the addition of Rs. 46,680 is directed to be deleted. 24. Ground No. 8 in assessee's appeal relates to telescoping and set off. 25. After hearing the rival submissions of the parties, the AO is directed to allow telescoping and set off of the finally sustained additions of income with various investments treated as undisclosed income of the assessee. He shall, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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