TaxTMI 
TaxTMI 
2005 (10) TMI 250
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....person of Smt. Kusum Kamra which made the total jewellery of 1013.500 gms. On being called upon to explain the source of investment in gold jewellery, it was stated by the assessee that it belonged to his wife Smt. Kusum Kamra which was received by her at the time of marriage in 1967 from her parents and parents-in-law and also at the time of ceremonial occasions like, birth of son, etc. It was also submitted that part of the jewellery belonged to the wife of Shri Vijay Munjal who was brother of assessee's wife. The reason for keeping the jewellery in the locker by the wife of Shri Vijay Kumar Munjal was also explained. The AO treated gold jewellery of 698.700 gms. as explained and balance gold jewellery of 314.800 gms. was treated as acquired out of undisclosed income of the assessee. As a result of that an addition of Rs. 1,44,808 was made. The learned CIT(A) deleted the addition after considering the fact that the locker was in the name of Smt. Kusum Kamra, wife of the assessee, who was separately assessed to tax and she had duly stated in her statement that the jewellery belonged to her and her bhabhi. It was clearly stated that her husband had nothing to do with her jewellery.....
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....0 ------------------------------------------------- The AO came to the conclusion that the amounts mentioned on this page were advances given to the persons named in the paper by the assessee on 6th May, 1996. A sum of Rs. 86,685, being total of these items, was added to the assessee's total income under s. 69B of the Act. The learned CIT(A) deleted the addition vide para 7 of his order. 7. After considering the rival submissions and perusing the relevant material on record, it is observed from the copy of this page, placed at p. 49 of the paper book, it contains certain names along with amounts and further date of 6th May, 1996 is found written thereon. Neither the name of the assessee is appearing on this page nor it is signed by the assessee. Apart from mentioning the contents, which have been extracted above, there is not even an iota of evidence to suggest that these represented the loans made by the assessee to the persons named in this page. An important aspect which cannot be lost sight of is that it is a case of search and if such entries had represented the giving of loans by the assessee, as is opined by the AO, there would have been some other material found in....
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....etc. (iii)Other expenses 30,000 ----------- 2,06,000 ------------------------------------- The AO found that certain papers relating to marriage expenses were also found during the course of survey under s. 133A on the premises of M/s Sriganganagar Enterprises, which concern was being run from Nohra No. 17 belonging to Shri Subash Kamra. Photocopies of the papers were confronted to the assessee who admitted that the papers related to the marriage expenses of his daughter. He, however, raised dispute with regard to certain pages as under. Page 34 The amount of this paper was taken by the assessee at Rs. 17,425, which related to the purchase of four bangles, the value of which was worked out at Rs. 27,465 [coded as 274.65] including Rs. 280 labour charges. After considering payment of Rs. 10,000 [coded as 100], the ....
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....35 as discussed above] (ii) Clothes (a) shawls 21,330 (b) nighties, 9,136 pullover, cardigan, etc. (c) sarees 53,965 (including Rs. 15,000 on page No. 39) (d) suits 30,619 -------- ....
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....p; 2,47,323 ---------------------------------------------------- It was further observed that several other expenses were not included in the above items. The AO further noted that the expenditure on tent house, light, decoration, halwai and waiter etc. (Rs. 50,000) and other expenses (Rs. 30,000) totalling Rs. 80,000 were admitted by the assessee in his letter dt. 23rd May, 1997 addressed to the ADIT, Bikaner which was now stated at Rs. 22,600 (Rs. 16,000 + Rs. 3,100 + Rs. 3,500). The AO got further enquiry conducted. He, therefore, estimated the gathering at around 700 to 800 persons and estimated the food expenses at Rs. 50,000 which was admitted by the assessee in his statement dt. 29th Dec., 1998 that the expenditure on food may be at around Rs. 70 per head. As the assessee had shown expenditure of Rs. 8,193 the AO allowed credit for this amount and calculated the undisclosed expenditure at Rs. 41,807 (Rs. 50,000 minus Rs. 8,193). He further made estimate of expenses on decoration, furniture, tikka, etc. at Rs. 50,000. The total expenditure thus estimated by the AO on marriage came to Rs. 3,39,130 (Rs. 2,47,323 + Rs. 41,807 + Rs. 50,000) rou....
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.... pp. 35 and 39 of the paper book on the ground that the assessee himself had admitted that these papers were recovered from the almirah of the assessee kept in his office situated at Sriganganagar along with other papers of marriage expenditure. He further upheld the AO's view on the addition made on the basis of p. 34. As regards the estimation of expenditure on food and other items, it was found that the assessee had received Rs. 92,000 in the form of customary gifts (shagun) and the AO had not brought on record any material for making estimate of Rs. 50,000 under the head 'food' and Rs. 50,000 on other items totalling Rs. 1 lakh. He scaled down the estimate to Rs. 80,000. However, the contention of the assessee with regard to Rs. 26,000 withdrawn from the bank by the assessee and utilized towards marriage expenses was accepted by the first appellate authority. He, therefore, in his final analysis, sustained the addition (by considering the rectification order also) as under: --------------------------------------------------- 1. Jewellery  ....
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....ince us on allowing any further relief on the additions sustained by the learned CIT(A) in the impugned order and the order passed in rectification, thereby setting right the calculation mistake etc. In the same manner, the learned Departmental Representative also could not explain as to on what basis the view taken by the learned CIT(A) be disturbed. The learned CIT(A) has elaborately discussed separately the contents of pp. 34, 35 and 39 with which we are fully agreeable. The benefit of Rs. 2,24,600, as claimed by the assessee, being the source of investment, has also been fully accepted as the AO had no reason to dispute the withdrawal of Rs. 26,000 made by Shri Kundan Lal, the assessee's accountant on his behalf. Considering the facts in totality, we are of the considered opinion that the addition so sustained in the first appeal is reasonable and does not warrant any interference. The ground raised by the Revenue as well as the assessee in his cross-objection are, therefore, not allowed. 11. Last ground of assessee's cross-objection is against the confirmation of addition of Rs. 9,118 under s. 69C of the Act. 12. Facts of the ground are that during the course of search, ....