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TMI Blog2003 (6) TMI 164X X X X Extracts X X X X X X X X Extracts X X X X ..... red in law in deleting the addition of Rs. 7,86,400 made by the AO on account of unexplained capital built-up by the assessee. 3. That, on the facts and in the circumstances of the case, the learned CIT(A) has erred in law in deleting the addition of Rs. 12,29,475 made by the AO on account of unexplained investment in jewellery. 4. That, it is prayed that the order of the learned CIT(A) be set-aside and that of the AO be restored. 5. That the appellant requests for leave to add or amend or alter the grounds of appeal before the appeal is heard and disposed off." 3. Ground Nos. 4 and 5 are general in nature, so do not require any comments on our part, while ground Nos. 1 to 3 are inter-linked and relates to deletion of addition o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... llowing assets were shown: Rs. Cash in hand 42,700 Loans 1,20,600 Investment in shares of various companies 64,600 Other investments 6,23,100 8,51,000 The AO pointed out that the investment in shares have been owned by Sh. Rakesh Kumar, husband of the assessee, in a petition filed before the Hon'ble Settlement Commission and that for balance investment of Rs. 7,86,400, the assessee had not filed any explanation. The AO, therefore, added Rs. 7,86,400 as taxable income of the assessee for block period under s. 68 of the IT Act. 5. Before the learned CIT(A), the assessee pointed out that it has been stated during the course of search that the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (5) Pooja Bhat vs. Asstt. CIT (2000) 66 TTJ (Mum) 817 : (2000) 73 ITD 205 (Mum). It was further contended that the Department was required to establish that the assessee was in control and possession of the property in order to charge the tax. It was also argued that even otherwise, if any asset was shown in the balance sheet, no tax could be charged with respect to the same during the block assessment. 5.1 As regards to the addition of Rs. 12,29,475, the facts are that the assessee had declared gold ornaments weighing 3.4 kgs. valued at Rs. 12,47,210 and silver articles weighing 27 kgs. valued at Rs. 1,96,338, in her wealth-tax return for the asst. yr. 1995-96. The aforesaid items were claimed to have been received by way of gifts f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the assessee had filed return of income, which was accompanied with balance sheet/statement of affairs in which various assets, e.g., cash in hand, loans, investment in share and others were reflected. It was stated that gold jewellery and silver jewellery items were reflected in her statement of affairs and she cannot simply disown those assets. Therefore, the addition had been rightly made as the assessee had not been able to explain the various assets reflected in her statement of affairs/balance sheet. 6.2 The learned CIT(A) after considering the submissions of both the parties observed that what was required to be assessed by completing block assessment was the undisclosed income found as a result of search as per the provisio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... c. 158B(b) defines the undisclosed income. In accordance with the provisions of s. 158B(b), "undisclosed income" includes any money, bullion, jewellery or other valuable article or thing or any income based on any entry in the books of account or other documents or transactions, where such money, bullion, jewellery, valuable article, thing, entry in the books of account or property which has not been or would not have been disclosed for the purposes of this Act". 7.1 In the instant case, it is not the case of the Department that any assets or investments in the shape of money, bullion, jewellery, etc. were found during the course of search, which had not been disclosed by the assessee. On the contrary, the assets found were much less tha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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