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TMI Blog2013 (12) TMI 1366X X X X Extracts X X X X X X X X Extracts X X X X ..... e learned Assessing Officer (AO) of treating Jewellery worth Rs.35,21,049/- as unexplained. The appellant craves leave to add, alter, amend or delete all or any of the above grounds of appeal before or during the course of hearing." 2. The brief facts of the case are that during the search & seizure operation, jewellery amounting to Rs.42,14,534/- was seized. The AO asked the assessee to explain the source of acquisition of the jewellery. The assessee submitted a valuation report of jewellery dated 19.01.1995 and also stated that jewellery of Rs.4,74,760/- was purchased during the month of December and January, 1997. The AO considering the details submitted by the assessee treated the jewellery of the value of Rs.10,00,000/- as explained ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ailed to submit any cogent documentary evidence either before the AO or before him to prove the source of acquisition of his jewellery. He thus confirmed the action of the AO and dismissed the appeal of the assessee. Being aggrieved, the assessee has come in appeal before us. 3. We have heard the ld. representatives of both the parties and also have gone through the records. The ld. representative of the assessee (AR) has submitted that the jewellery seized by the department in fact was the old jewellery of the family purchased from time to time and some of it also received as gifts from relatives and friends on certain occasions from time to time for the past so many years. After the search and seizure operation, the necessary details lik ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nder the Income Tax Act. He has further submitted that even the confirmations from the sellers were submitted to the CIT(A) but the CIT(A) failed to take into consideration the same. He has further brought our attention to page 17 and 18 of the paper book and tables therein under the heading "Jewellery Reconciliation Statement". Referring to the sub-heading "Gold Jewelry", Ld Counsel mentioned that the investigation wing quantified the gold jewellery 642.900 gms, which is valued at Rs. 6,02,015/-. As per the assessee, the same stands reconciled with the above mentioned 'jewellery report dated 20.1.1995' substantially. Similarly, referring to the next sub-heading "Diamond Jewelry", Ld Counsel mentioned that the found items of 112.11 Carats v ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the Revenue has all the powers to summon the officers concerned. Referring to the gifts mentioned above, the assessee relied on the spirit of the Circular issued by the CBDT. Thus, it is the case of the assessee that the jewellery reports dated 20.1.1995 should be considered and the additions be deleted. Further, Ld. Counsel brought our attention to the said Circular of the CBDT which contain guidelines to be followed in the matters of seizure of gold and jewellery during the course of search action. From the said circular, it is apparent that in case of a person not assessed to wealth-tax, gold jewellery and ornaments to the extent of 500 gms. per married lady, 250 gms. per unmarried lady and 100 gms. per male member of the family need n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ch was further verified by the AO during the remand proceedings and he did not point out any defect or suspicion regarding validity of the same. If the said report is accepted, the same accounts for the addition of Rs. 27,28,970/- [Rs. 8,98,060 + Rs.2,94,450/- + Rs. 1,42,350/- + Rs.2,26,610/- + Rs. 7,500/- + Rs. 30,000/- + Rs.5,30,000/- + Rs. 6,00,000/-]. Apart from that, the assessee had also submitted the copies of bank statements showing the payment through banking channels and even the correlating bills of the jewellery also. Further, if the bills dated 19.12.1996 and 9.1.1997 are considered, the assessee gets relief to the tune of Rs. 11,20, 954/- [Rs. 5,82,124/- + Rs. 5,38,830/-]. The balance of addition is explained by the fact of re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... time of remand proceedings. These were not the fresh evidences rather were in the shape of corroborative evidences. From the return of incomes of the assessee for the earlier years, it reveals that assessee is a high tax payer belonging to a good financial status. The possession of a jewellery worth value of about Rs.45 lakhs by the assessee cannot be said to be improbable or beyond the source of income of the assessee. The assessee even has produced the evidences explaining the source of acquisition of the jewellery worth about Rs.38 lakhs. The assessee even has filed the statements of jewellery in his Income Tax Returns for the assessment year 2006-07. It is also very common that as per the customs and practices prevalent in our country ..... X X X X Extracts X X X X X X X X Extracts X X X X
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