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TMI Blog2013 (7) TMI 1031X X X X Extracts X X X X X X X X Extracts X X X X ..... d expenses. 2. Whether on the facts and in circumstances of the case, the CIT(Appeal) has erred in deleting the addition of ₹ 10,33,397/- out of total addition of ₹ 30,35,537/- made on account of unexplained cash and jewellery found at the premises of the assessee. 3. Brief facts of the case are that search operation under Section 132 of the I.T. Act was carried out on 28.03.2008. During the assessment proceedings, the A.O. noticed that the share of withdrawal for the house hold expenses in the family was ₹ 12,000/- only. The A.O. estimated household expenses to the extent of ₹ 1,20,000/-, therefore, he has made the addition of ₹ 1,08,000/-. The CIT(A) has deleted the addition as under :- (CIT(A) Page ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... count of household expenses is, hereby, deleted. Same view has been held by me in case of the appellant in her appeals for earlier years where similar addition has been made by the AO on same grounds. 4. We have heard Ld. Representatives of the parties and records perused. We find that on identical set of facts addition has been deleted by the CIT(A) in A.Y. 2006-07 and that order of the CIT(A) has been confirmed in ITA No.344/Agra/2011 in the case of ACIT Vs. Smt. Julie Gupta order even dated. The relevant findings is reproduced as below :- At the outset, the ld. Authorised Representative submitted that this issue is squarely covered by the order of I.T.A.T., Agra Bench in ITA Nos.155/Agra/2011 in the case of Shri Praveen Gupta v ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he second ground is in respect of deletion of addition of ₹ 10,33,397/- by the CIT(A) out of total addition of ₹ 30,35,537/- made by the A.O. The A.O. made following addition as the assessee has failed to explain in respect of jewellery, cash etc. found at the residence. (A.O. Page No.3) 1. Cash found at residence Rs.7,02,140/- 2. Jewellery and Miscll. Surrendered (Locker no.70 at ICICI Bank) Rs.8,00,000/- 3. Stamp Duty surrendered for land At Sirole Rs.5,00,000/- 4. Jewellery Silver items found At residence Rs.10,15,397/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... benefit to the assessee is found in consonance with the general practices in Hindu families whereby jewellery is gifted by the relatives and friends at the time of social functions like-marriage, birthday, anniversary and other festivals. These gifts are customary and customs prevailing in a society cannot be ignored. The explanation given by the appellant is found acceptable depending upon the standard of the family and customs prevailing in Hindu society. Thus the AO is not found justified in treating the jewellery as unexplained since the same is covered by the surrender made by the appellant and explanation submitted. Thus the addition of ₹ 30,35,537/- is reduced to ₹ 20,02,140/- which includes surrender of ₹ 20,00,000 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d as below :- (A.O. Page No.3) At the time of search operation the following cash and jewellery were found in the possession of the assessee:- i. Cash found at residene Rs.7,02,140/- ii Jewellery Silver items found at residence Rs.10,15,397/- iii Jewellery found in locker no.70 at ICICI Bank Rs.7,88,075/- The assessee was asked to explain the nature and source of the above cash, jewellery and silver items found in respect of the jewellery and silver items found at residence neither any explanation to prove nature and source have been give ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . The case of the A.O. is that there is no surrender against jewellery found at the residence ₹ 10,15,397/-. The A.O. has recorded the fact that for the jewellery and silver items found at residence, neither any explanation to prove nature and source have been given nor any documentary evidence to explain the source of it was submitted. The A.O. made the addition of ₹ 10,15,397/- for want of explanation. The CIT(A), without appreciating the case made by the A.O., deleted the addition by observing that the benefit of CBDT Circular is allowable to the assessee as jewellery has been declared in Wealth Tax return. The jewellery declared in the Wealth Tax is a different issue as even if jewellery is declared in the Wealth Tax Return, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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