9911796707
TMI Blog2012 (10) TMI 782X X X X Extracts X X X X X X X X Extracts X X X X ..... member, than no seizure is to be affected. In the present case value of jewellery surrendered by assessee is 738.570 grams of Rs. 5,64,674/-. The total jewellery treated to be “explained” one is 2888 grams as per the circular & rest of the jewellery is to be treated as “unexplained” - First Appellate Authority has erred in deleting the total value of jewellery , thus the total addition required to be made by the AO is value of jewellery i.e 139 gms + 234 gms by taking the value at 755 per gm - partly in favour of revenue. - I.T.A .No-530/Del./2010 - - - Dated:- 12-10-2012 - SHRI G.D. AGARWAL, AND SHRI RAJPAL YADAV, JJ. Appellant by: Sh. Sudesh Garg,Sr. DR Respondent by: Sh. S.P.Agarwal, Adv. ORDER PER RAJPAL YADAV, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 658/-. Her husband has filed a revised return and offer a sum of Rs. 5,64,675/- for taxation on account of investment in the jewellery found in the locker. If the rate taken for valuing the jewellery at the time of search is appliedcompleted to the amount offered by husband then it would come out that he had covered 747.181 grams of jewellery. The balance is 239.469 grams having value of Rs. 1,89,983/-. It should be treated as belonging to her husband because major part of the jewellery has been owned by him. The Ld. A.O did not accept the contention of the assessee and confirmed the addition i.e value of Rs. 7,45,658/-, the total jewellery found in the locker. On appeal, Ld. CIT(A) has deleted the addition on the ground that it can be ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d by the assessee. In support of his contention, he relied upon the decision of Hon ble Delhi High Court in the case of Ashok Chadda vs ITO rendered in ITA No. 274/2011. And judgement of Hon'ble Gujarat High Court in the case of CIT vs Rattan Lal Vyapari Lal Jain reported in 339 ITR 351. He placed on record copies of both these judgements. The assessee also filed a paper book containing 29 pages wherein she has placed on record, copy of the panchnama, her statement recorded at the time of search, copies of the revised return filed by Dr. S.P.Agarwal his assessment order for AY 2006-07 and family chart of the assessee. 7. In locker No 477, jewellery having 3134.400 grams, valued at Rs.23,96,100/- was found. The assessee contended that she ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n'ble Gujarat High Court relied upon by the assessee, the scope of the circular bearing no. 1916 has been considered. It is true that this circular was issued by the Board guiding its officials not to seize gold jewellery, if it is found to the extent of 500 grams and claimed to be of a married lady. Similarly, to the extent of 250 grams claimed to be belonging of a unmarried lady and 100 grams claimed to be belonging of male member, than no seizure is to be affected. The Tribunal in the past had adopted an approach in following the circular and giving benefit to the assessee even if explaining the source in respect of the jewellery being held by the family member. The simple reason for this is that in day-to-day human life, it is quite imp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e said circular. Though it is rue that the Central Board of Direct Taxes Circular No. 1916, dated May 11,1994, lays down guidelines for seizure of jewellery and ornaments in the course of search, the same takes into account the quantity of jewellery which would generally be held by the family members of an assessee belonging to an ordinary Hindu household. The approach adopted by the Tribunal in following the said circular and giving benefit to the assessee, even for explaining the source in respect of the jewellery being held by the family is in I.T.A .No-530/Del./2010 7 consonance with the general practice in the Hindu families whereby jewellery is gifted by the relatives and friends at the time of social functions, viz. marriages, birt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ght have independently claimed the benefit of circular in his assessment, we have perused the assessment order of Dr. S.P.Agarwal for AY 2006-07 available on page 18 of the paper book. From the perusal of the assessment order, it reveals that he has not claimed benefit of circular qua any jewellery. Therefore, on the basis of the circular 100 grams out of 239.469 grams is to be treated as explained . It may be related to Dr. S.P.Agarwal. The balance 139.469 gram is to be considered as unexplained . Value of this jewellery to be added in the income of the assessee. The order of Ld. CIT(A) is modified on this point and A.O is directed to add value of 139.469 grams @ Rs. 755.74 per gram. 11. With regard to the jewellery found in lockerNo ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
