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TMI Blog2020 (9) TMI 923X X X X Extracts X X X X X X X X Extracts X X X X ..... e aforesaid CBDT Instruction, then, there will be no unexplained jewellery to be treated as unexplained investment u/s. 69 A of the Act. Thus, looked at from any angle, the addition made by the A.O. on account of unexplained investment u/s.69A of the Act cannot survive. Accordingly, we delete the addition. Levy of interest u/s. 234B - claim of the assessee that in the year under consideration, the assessee did not have any income chargeable under the head profits and gains of business and profession and further he is a Senior Citizen of more than 60 years old - HELD THAT:- Sub section (2) of section 207 which has been inserted by Finance Act, 2012 w.e.f. 01.04.2012 carves out an exception by stating that sub section (1) would not be applicable to a resident individual assessee who does not have any income chargeable under the head profits and gains of business and profession and if he has attained the age of 60 years or more at any time during the relevant previous year. As per the copy of PAN card submitted before us, the date of birth of the assessee is 03.05.1949. Thus, during the previous year relevant to the assessment year under dispute, the assessee has crossed the age ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and silver articles were found in the residential premises and lockers of the assessee : No. Particulars Gross Wt. (gm) Net Wt. (gm) Value (Rs.) 1 Gold Jewellery (including diamond studded gold jewellery) 1206.23 gms 1099.63 gms 31,29,625/- 2 Diamonds 18.18 cts 4,70,500/- 3 Silver Articles 8953.8 gms 8448.30 gms 4,13,106/- 40,13,231/- 5. He, therefore, called upon the assessee to explain the nature and source of acquisition of gold/diamond jewellery and silver articles through supporting evidence. As observed by the A.O., in response, the assessee filed detailed submissions along with reconciliation of ownership of jewellery, purchase bills, as available, and affidavit of his wife, owning up her share of jewellery found during search. On verifying ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es found during search and seizure operation through supporting invoice, bills, etc. In this context, he drew our attention to the copy of the reconciliation statement placed at pages 155 and 156 of the paper book. He submitted, the assessee was previously holding high official position and retired as a Managing Director and CEO. He submitted, from the A.Y. 2009-10 onwards, the assessee has consistently declared income of more than ₹ 1 crores. He had total investment of ₹ 4.74 crores in addition to immovable property. He submitted, the complete bill wise and year wise purchase of jewellery which was reconciled with the punchanama prepared at the time of search and seizure operation and the reconciliation statement was also furnished before the A.O. and ld. CIT(A). He submitted, without properly examining the facts and evidences brought on record, the A.O. has arbitrarily treated a part of the jewellery and silver articles found as unexplained on a baseless allegation that they were purchased through cash and unexplained gifts. Proceeding further, he submitted, the so called cash purchases as alleged by the A.O. were not cash purchases at all. He submitted, the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rt of gold/diamond jewellery and silver articles to be explained, for which payments were either made through cheque or credit card. Whereas, the balance amount of the jewellery and silver articles have been treated as unexplained investments alleging that either they have been purchased in cash or the claim of receipt of gifts have not been proved. It is further observed, the A.O. has categorically stated in the assessment order that to explain the nature and source of acquisition of jewellery and silver articles, the assessee had furnished a statement reconciling the gold/diamond jewellery and silver articles as per Punchnama. Further, in supporting of such statement, the assessee has furnished the purchase bills/invoices and other documentary evidence. The A.O. has not found any defect/discrepancy in such statement, bills and invoices. According to him, only because the payments for some items were made in cash, it is not believable. 11. As regards the aforesaid allegation of the A.O., we have noted from the material placed on record that such allegation is not on the basis of the facts on record. On the contrary, the facts on record clearly indicate that there is no such ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dition made by the A.O. on account of unexplained investment u/s.69A of the Act cannot survive. Accordingly, we delete the addition of ₹ 13,15,618/-. The grounds are allowed. 12. In ground no. 5, the assessee has challenged the levy of interest u/s. 234B of the Act. It is the contention of the ld. AR that during the financial year relevant to A.Y. 2013- 14, the assessee has crossed 60 years, hence, he is not only a Senior Citizen but the provision of section 207 would be applicable. He submitted, the assessee also did not have any income chargeable under the head profits and gains from business and profession. Therefore, interest levied u/s. 234B has to be deleted. 13. The ld. DR submitted, the A.O. may be directed to verify assessee s claim. 14. Having considered the rival submissions, we find that, though, this issue was specifically raised before ld. CIT(A) however, he has not recorded any substantive finding on the issue. It is the claim of the assessee that in the year under consideration, the assessee did not have any income chargeable under the head profits and gains of business and profession and further he is a Senior Citizen of more than 60 years old. On a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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