2014 (10) TMI 1

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....dent in I.T.T.A.No.229 of 2003 is the Karta of the family, who, in turn, is an independent assessee. Similarly, the respondent in I.T.T.A.No.120 of 2003 is a member of the HUF, and he is also an independent assessee. All the three assesses have availed the benefit under Voluntary Disclosure of Income Scheme (VDIS) and declared items, which are mostly of jewellery, namely gold and diamonds. For example, the value of gold declared by the Kartha of the Family, by name Harish Kumar, was Rs. 2,64,040/-, and that of diamonds - Rs. 16,38,700/-. Similarly, the value of the gold disclosed by the other assessee, Tilak Raj Kumar, was Rs. 1,57,028/- and that of diamonds - Rs. 1,16,000/-. Certificates of disclosure were also furnished to them. All th....

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....tion of diamonds worth Rs. 12,73,028/- as claimed by the assessee is a genuine transaction? 2. Whether on the facts and in the circumstances of the case, the Tribunal is correct in law in holding that the amount of Rs. 12,73,028/- cannot be added u/s.68 of I.T.Act? 3. Whether on the facts and in the circumstances of the case the Tribunal is correct in directing the Assessing Officer not aggregate the sum of Rs. 2,10,000/- being the assessees share from M/s. Basant Farms for rate purposes? 1. Whether on the facts and in the circumstances of the case the Tribunal is correct in law in holding that the alleged sale transaction of diamonds worth Rs. 51,92,750/- as claimed by the assessees, is a genuine transaction? 2. Whether on the ....

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....alue is declared, it is axiomatic that the items of jewellery are studded with diamonds and other precious stones. No effort was made to have a detailed account of the nature of jewellery that was declared. There is no dispute that what was declared by the respondents was in the form of ornaments. It is just unthinkable that the ornaments of such huge value and quantity would be in the form of pure gold. There is ample evidence to show that all the three assesses have sold the diamonds, that are separated from the jewellery, at Surat. It is a place known for voluminous business in diamonds. Not only the particulars of the persons, who purchased the diamonds was furnished, but also the manner of payment was disclosed. The entire payments ....