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TMI Blog2021 (7) TMI 359X X X X Extracts X X X X X X X X Extracts X X X X ..... ions are liable to be deleted and relied on relevant case law etc , the impugned direction issued to the A O by the Ld. CIT(A) without appreciating the facts and circumstances properly is not sustainable in law. We find merit in the assessee s submissions. Since Shri. Ravi Kumar Gupta owned up the assets found in various premises referred to in the order of settlement commission which included the impugned assets found in the assessee s premises and the settlement commission on due appreciation of the relevant material has accepted and settled the same in the order referred, supra, no part of the said assets could be considered for addition in the hands of the assessee - A O is directed to delete the impugned addition. Assessee s appeal is allowed. - I.T.A. No: 559/Chny/2019 - - - Dated:- 24-6-2021 - Shri Duvvuru Rl Reddy, Judicial Member And Shri S. Jayaraman, Accountant Member For the Appellant : Ms. Jharna B. Harilal, CA For the Respondent : Shri. Abani Kanta Nayak, CIT ORDER PER S. JAYARAMAN, ACCOUNTANT MEMBER: The assessee filed this appeal against the order of the Commissioner of Income Tax (Appeals)- 16, Chennai in ITA No.99/CIT(A) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rd to the jewellery/bullion, diamond, gold coins and silver declared by various family members and the company in respect of wealth-tax returns which had been verified and accepted by the AO. The balance quantity of jewellery/bullion/diamond/gold coins and silver which were not explained were valued at ₹ 1,81,72,099/- and the AO proposed to assess the same as unexplained investment in the hands of the Appellant. The Appellant submitted that the Appellant s father Sri Ravi Kumar Gupta declared ₹ 1.5 crores under Section 132(4) of the Act during the search proceedings and further had also made declaration in the settlement application before the Settlement Commission which has been accepted and to that extent the same was not liable to be included in the hands of the Appellant. He had also challenged the valuation of the jewellery at ₹ 1,81,72,099/-. Subsequently, vide order dated 07.12.2018 under Section 154 of the Act, the value of jewellery has been reduced to ₹ 1,61,42,900/-. A copy of the order under Section 154 of the Act as made by the AO is enclosed at Page No.30-35 of the Paper Book. Further, the Appellant had also provided cash flow extracts of the f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... him. While doing so, the CIT (A) failed to consider that the application under Section 154 of the Act was only with regard to valuation and not with regard to inclusion of value of jewellery in the hands of the Appellant. The above order of the CIT(A) was challenged before the ITAT wherein the Appellant challenged the addition of cash of ₹ 5,65,420/- and also inclusion of jewellery which value has been reduced to ₹ 1,61,42,900/-. 4.2. The Ld. AR submitted that at the outset , from the evidence provided before the authorities below, no part of the impugned addition as sustained by the CIT (A) is required to be upheld. Undisputedly, it is a case where the assets found in various premises referred to in the order of the Settlement Commission which is enclosed in the Paper Book from Page No.36 to 65, belonged to the family and all of them have been owned by Sri Ravi Kumar Gupta, father of the Appellant before the Settlement Commission for which adequate evidence has been let in by him and the Settlement Commission was pleased to accept the same and settle the issue. Accordingly, no part of the said assets are required to be considered for addition in the hands of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l 5,67,415 Note: Cash found by the search team as on 07.08.2014 was ₹ 45,65,420, out of which ₹ 40,00,000 was seized and the balance cash of ₹ 5,65,420 was left by the search team as the amount was matching with the books of accounts. 6.1 The assessee also submitted before the ld CIT(A) that the cash of ₹ 5,65,420 was treated as accounted by the search parties and the balance of ₹ 40,00,000 was seized as unaccounted vide inventory of cash in ANN/STC/AG/CASH/S dated 08.08.2014 . As decided by the search party, out of ₹ 45,65,420 a sum of ₹ 5,65,420 was represented accounted cash. Only the balance of ₹ 40,00,000/- remained to be accounted. Even this ₹ 40,00,000/- has been admitted by Sri. Ravi Kumar Gupta, father of the appellant , in his Settlement Application before the Settlement Commission, Chennai which was also accepted by the Commission vide its order dated 08.10.2018 under section 245(D) of the IT Act, 1961. In view of the above, the assessee pleaded that the above addition of ₹ 5,65,420/- may please be deleted from the assessment of the Appellant. 6.2. Thus, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Chennai Ferrous P. Ltd., - Bullion disclosed u/s. 132(4) ₹ 15.50 crores Total ₹ 60.00 crores 16.2 The PCIT pointed out that the applicant filed an affidavit dated 24.10.2016 in which he denied having ever done transactions in bullion trading in the two concerns and also has not admitted any additional income on account of bullion trading in the Settlement Application. Therefore, the PCIT submitted that the disclosure is not full and true. .................................................................................................................... .................................................................................................................... ........... 19.1 We have carefully considered the submission of the applicant and perused the material on record. We are of the considered view that the disclosure of additional income of ₹ 12.20 crores along with offer of additional income of ₹ 57.69 crores in the SOF broadly addresses the issues raised by the Department and as emanating from material found and seized duri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hed a copy of the order of the Settlement Commission before the Ld. CIT(A) and pleaded that the assessee has disowned the ownership of the impugned assets and on the other hand his father, Shri. Ravi Kumar Gupta, owned them up before the Settlement Commission, which has duly considered and settled the issue, therefore, the impugned additions in the hands of assessee was opposed to law and the impugned additions are liable to be deleted and relied on relevant case law etc , the impugned direction issued to the A O by the Ld. CIT(A) without appreciating the facts and circumstances properly is not sustainable in law. 7.3 Therefore , we find merit in the assessee s submissions extracted in para 4.2, supra. Since Shri. Ravi Kumar Gupta owned up the assets found in various premises referred to in the order of settlement commission which included the impugned assets found in the assessee s premises and the settlement commission on due appreciation of the relevant material has accepted and settled the same in the order referred, supra, no part of the said assets could be considered for addition in the hands of the assessee . Therefore, the A O is directed to delete the impugned additi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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