2015 (12) TMI 823

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....39;the Act') in the premises of the assessee on 09.11.2006. According to the Ld. counsel, the assessee is one of the partners in M/s Rabbit Jewellery, Rabbit Finance and Rabbit Mark Rice Mill. According to the Ld. counsel, the only issue arises for consideration is with regard to addition of Rs. 7,51,610/- being the value of the gold jewellery found during the course of search operation. The Ld.counsel further submitted that during the course of search proceedings, 2665 gms of gold jewellery was found. According to the Ld. counsel, the assessee and family members disclosed 1710 gms of gold jewellery. Therefore, excess jewellery of 955 gms was found. The assessee explained before the Assessing Officer that 888 gms of jewellery belongs to....

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....nt of 410 gms in the HUF status cannot be a reason to make addition in the hands of the present assessee. According to the Ld. counsel, the CIT(Appeals) is not justified in confirming the addition in the hands of the present assessee. 3. On the contrary, Shri A.V. Sreekanth, the Ld. Departmental Representative, submitted that during the course of search operation, Revenue authorities found 2665 gms of gold Jewellery. The assessee and his family disclosed only 1801.800 gms to the Department, therefore, excess gold jewellery of 955 gms was seized by the Department. After considering the explanation of the assessee, the Assessing Officer found that the assessee could not produce purchase bill for purchase of 410 gms of gold jewellery in Feb....

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.... of gold jewellery. The assessee appears to have claimed before the lower authorities that the HUF of the assessee owns 501 gms of gold jewellery. HUF of Shri Manivannan owns 420 gms of gold jewellery and Smt. Sharmila owns 640 gms of jewellery. It is not in dispute that the assessee, other than in his individual capacity, has also acquired in HUF capacity. Likewise, Shri Manivannan also acquired apart from individual capacity, in the HUF capacity. The jewellery belonging to Smt. Sharmila was not considered by the Assessing Officer to the extent of 640 gms. Therefore, this Tribunal is of the considered opinion that by taking into consideration of the status of the assessee and other family members, the gold jewellery owned by Smt. Sharmila,....