Tribunal dismisses department's appeal, allows assessee's appeal partially. Customary gifts acknowledged.

The Tribunal dismissed the department's appeal and partially allowed the assessee's appeal. The addition of Rs. 12,36,164/- was deleted, as well as the double addition of Rs. 30,21,912/-. The Tribunal acknowledged the customary nature of "Stri Dhan" and family gifts, leading to the deletion of the entire unexplained jewellery addition made by the Assessing Officer. The ground challenging the lack of specific authorization for the search under section 132 was dismissed due to the absence of arguments. The decision was rendered on 11.10.2012.

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Issues Involved:
1. Addition of Rs. 8,95,058/- sustained by CIT(A) out of total addition of Rs. 13,70,058/-.
2. Department's objection to reducing the addition by Rs. 4,25,000/- out of the total addition of Rs. 13,70,058/-.
3. Deletion of the addition of Rs. 12,36,164/- by CIT(A).
4. Deletion of the addition of Rs. 30,21,912/- by CIT(A).
5. Validity of the assessment due to the alleged lack of specific authorization u/s 132.

Detailed Analysis:

1. Addition of Rs. 8,95,058/- sustained by CIT(A) out of total addition of Rs. 13,70,058/-:
The assessee argued that the jewellery found during the search operation, valued at Rs. 17,95,058/-, was her "Stri Dhan" received over the years, including gifts from her marriage in 1981 and subsequent occasions. The Assessing Officer (AO) allowed an allowance of 500 grams valued at Rs. 4,25,000/-, considering it as "Stri Dhan", and added the remaining Rs. 13,70,058/- as unexplained jewellery. The CIT(A) further allowed an additional 500 grams, reducing the unexplained jewellery to Rs. 9,45,058/-.

2. Department's objection to reducing the addition by Rs. 4,25,000/- out of the total addition of Rs. 13,70,058/-:
The department contended that the entire jewellery found should be treated as unexplained in the hands of the assessee, arguing that the Board circular does not exempt the jewellery from being assessed as unexplained income. The Tribunal, however, upheld the CIT(A)'s decision to reduce the addition, recognizing the customary nature of "Stri Dhan" and gifts received by family members on various occasions.

3. Deletion of the addition of Rs. 12,36,164/- by CIT(A):
The jewellery valued at Rs. 12,36,164/- was found in the possession of Smt. Savita Bansal during the search. The AO had issued a query to Smt. Savita Bansal, and upon receiving a satisfactory explanation, did not make any addition in her assessment. The CIT(A) noted that this jewellery was wrongly added to the assessee's income and directed its deletion. The Tribunal confirmed this decision, emphasizing that the jewellery should be considered in the hands of Smt. Savita Bansal, who is separately assessed.

4. Deletion of the addition of Rs. 30,21,912/- by CIT(A):
The AO made an addition of Rs. 30,21,912/-, which included the jewellery valued at Rs. 12,36,164/- and Rs. 17,95,058/-. The CIT(A) observed that this resulted in a double addition, as the jewellery valued at Rs. 17,95,058/- was already considered separately. The Tribunal upheld the CIT(A)'s decision, confirming that the addition was without basis and constituted a double addition.

5. Validity of the assessment due to the alleged lack of specific authorization u/s 132:
The assessee raised a ground regarding the lack of specific authorization for the search u/s 132, arguing that the assessment should be quashed. However, no arguments were advanced on this ground during the proceedings, leading to its dismissal by the Tribunal.

Conclusion:
The Tribunal dismissed the department's appeal and allowed the assessee's appeal in part. The addition of Rs. 12,36,164/- was deleted, and the double addition of Rs. 30,21,912/- was also deleted. The Tribunal recognized the customary nature of "Stri Dhan" and gifts received by family members, ultimately deleting the entire addition made by the AO on account of unexplained jewellery. The ground regarding the lack of specific authorization u/s 132 was dismissed due to the absence of arguments. The order was pronounced in the open court on 11.10.2012.

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