2015 (12) TMI 100

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....e declaring total income of Rs. 1,85,440/-. During the course of assessment proceedings the AO noted that silver jewellery weighing 21021 grams valued at Rs. 420,420/- was found during the course of search. He, therefore, asked the assessee to explain the source of acquisition of the silver jewellery found. It was submitted by the assessee that silver articles have been received by him over a period of time as gift from his relatives and some have been purchased by him over a period of his life time. 3. However, the AO was not satisfied with the explanation given by the assessee. According to the AO, the assessee could not establish and substantiate the sources for the acquisition of the jewellery in form of silver articles. He noted tha....

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....grams to P.N. Gadgil & Co. and obtained new jewellery weighing 10,753 grams in lieu of said old jewellery. 5. Based on the arguments advanced by the assessee the Ld.CIT(A) noted that there is no material linking the receipt of income with the investment made by the assessee. Evidences regarding acquisition of silver items and related articles also are not available with the assessee especially when he is not a wealth tax assessee. However, he observed that in the society silver articles are usually received as gifts on different occasions such as marriage, birth of child, festivals etc., and further the same is also inherited from parents/grand parents for which there may not be any direct evidence. However, he held that the assessee bei....

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....o addition is called for. 8. The Ld. Departmental Representative on the other hand heavily relied on the order of the CIT(A). He submitted that the Ld.CIT(A) after considering the surrounding circumstances including the background of the assessee has reasonably given credit of 5 kgs of silver articles out of 21 kgs of silver articles found during the course of search, therefore, no further relief is warranted in the instant case. He accordingly submitted that the order of the CIT(A) be upheld and the grounds raised by the assessee be dismissed. 9. We have considered the rival arguments made by both the sides, perused the orders of the AO and CIT(A) and the paper book filed on behalf of the assessee. We have also considered the various....

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....or the assessee that no addition is called for is not sustainable. However, it is a fact to be noted that the assessee comes from a very reputed family of Pune and is engaged in the business of medical profession. Therefore, customary gifts might have been received by the assessee on various occasions in the last 35 to 40 years. Further, there is possibility of inheriting some silver items by the assessee from his parents/grand parents and also by his wife from her parents and in-laws. Further, from the rate of silver from A.Y.1981-82 to 2009-10 filed by the Ld. Counsel for the assessee, we find the rate of silver has gone up from Rs. 2,715/- per kg during A.Y. 1981-82 to Rs. 22,230/- per kg during A.Y. 2009-10. Thus there is wide variation....