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TMI Blog2017 (4) TMI 473X X X X Extracts X X X X X X X X Extracts X X X X ..... ee shall provide necessary details to the Assessing Officer to substantiate his claim. Deemed dividend addition u/s.2(22)(e) - Held that:- As the assessee submits that the assessee’s only plea is that the deemed dividend is to be restricted to the accumulated profits of the company. The DR has no serious objection in restricting the deemed dividend to the accumulated profits of the company. On hearing both sides in principle we hold that the CIT(A) is justified in sustaining the addition made u/s.2(22)(e) of the Act. However, such addition should be restricted only to the accumulated profits of the company as specified in the provisions of section 2(22)(e) of the Act. Therefore, for the limited purpose on verification and quantification ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... IT(A) ] dated 06.01.2015 for the A.Y. 2011-12. 2. The assesse in his appeal raised the following ground of appeal:- I. Foreign Currency of ₹ 7,63,340/- 1. The learned CIT(A) erred in confirming the addition of ₹ 7,63,340/- being foreign currency found at time of search action, without appreciating the fact that the said amount was duly accounted in the books of M/s.Fourways Travel Pvt. Ltd. and further these amounts were returned to the company by the assessee, therefore the addition ought to be deleted. II. Deemed dividend ₹ 90,00,000/- 2. The learned CIT(A) erred in sustain the addition of ₹ 90 lacs u/s.2(22)(e) of the Act, as deemed dividend without appreciating the correct facts, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d of returning it to the company. Therefore he added foreign currency valued at ₹ 7,63,340/- as undisclosed income. On appeal the CIT(A) sustained this addition observing that the remand report sent by the Assessing Officer is silent on this issue. 4. The learned counsel for the assessee submits that in the course of remand proceedings all the information was furnished, details were given to the Assessing Officer and it was explained that the currency seized does not belong to the assessee and merely because the currency is seized from the assessees premises it is not a ground for making addition in assessees hands. The learned counsel further submits that the foreign currency was received by the assessee from Fourways Travels Pvt. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... no serious objection in restricting the deemed dividend to the accumulated profits of the company. On hearing both sides in principle we hold that the CIT(A) is justified in sustaining the addition made u/s.2(22)(e) of the Act. However, such addition should be restricted only to the accumulated profits of the company as specified in the provisions of section 2(22)(e) of the Act. Therefore, for the limited purpose on verification and quantification of deemed dividend we restore this issue to the file of the Assessing Officer who shall quantify the disallowance u/s.2(22)(e) of the Act restricting to the accumulated profits of the company. 7. The last issue in the assessee s appeal is in respect of confirmation of addition towards jewelleri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ccounted jewellery found in the wardrobe and the bank lockers. It was further submitted that the inherited jewellery was passed on over ages in his family. Not satisfied with the explanation of the assessee the Assessing Officer added the jewellery, diamond and valuable worth ₹ 54,96,155/- as against ₹ 49,35,502/-. The CIT(Appeals) considering the submission of the assessee and applying CBDT Instruction No.1916 dated 11.05.1994 and looking into the social status of the family, agreed with the assessee s submission and partly allowed the ground of appeal by following various decisions of the Hon ble High Courts and also the Mumbai Bench of Tribunal in ITA No.5706/Mum/2009 in the case of Shri Hiten Mehta Vs. ACIT. The CIT(A) restr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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