TaxTMI 
TaxTMI 
2013 (7) TMI 1031
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....e on account of house hold expenses. 2. Whether on the facts and in circumstances of the case, the CIT(Appeal) has erred in deleting the addition of ₹ 10,33,397/- out of total addition of ₹ 30,35,537/- made on account of unexplained cash and jewellery found at the premises of the assessee." 3. Brief facts of the case are that search operation under Section 132 of the I.T. Act was carried out on 28.03.2008. During the assessment proceedings, the A.O. noticed that the share of withdrawal for the house hold expenses in the family was ₹ 12,000/- only. The A.O. estimated household expenses to the extent of ₹ 1,20,000/-, therefore, he has made the addition of ₹ 1,08,000/-. The CIT(A) has deleted the addition as un....
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....,000/- made on account of household expenses is, hereby, deleted. Same view has been held by me in case of the appellant in her appeals for earlier years where similar addition has been made by the AO on same grounds." 4. We have heard Ld. Representatives of the parties and records perused. We find that on identical set of facts addition has been deleted by the CIT(A) in A.Y. 2006-07 and that order of the CIT(A) has been confirmed in ITA No.344/Agra/2011 in the case of ACIT Vs. Smt. Julie Gupta order even dated. The relevant findings is reproduced as below :- "At the outset, the ld. Authorised Representative submitted that this issue is squarely covered by the order of I.T.A.T., Agra Bench in ITA Nos.155/Agra/2011 in the case of Shri Pra....
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....The second ground is in respect of deletion of addition of ₹ 10,33,397/- by the CIT(A) out of total addition of ₹ 30,35,537/- made by the A.O. The A.O. made following addition as the assessee has failed to explain in respect of jewellery, cash etc. found at the residence. (A.O. Page No.3) 1. Cash found at residence Rs.7,02,140/- 2. Jewellery and Miscll. Surrendered (Locker no.70 at ICICI Bank) Rs.8,00,000/- 3. Stamp Duty surrendered for land At Sirole Rs.5,00,000/- 4. Jewellery & Silver items found At residence Rs.10,15,397/- Rs.30,35,537/- 7. The CIT(A) has reduced the addition to the extent of ₹ 20,02,140/- as under :- (CIT(A) Page No.8 to 10) "5.3 Regarding addition on account of jewellery and silver ite....
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....ustoms prevailing in a society cannot be ignored. The explanation given by the appellant is found acceptable depending upon the standard of the family and customs prevailing in Hindu society. Thus the AO is not found justified in treating the jewellery as unexplained since the same is covered by the surrender made by the appellant and explanation submitted. Thus the addition of ₹ 30,35,537/- is reduced to ₹ 20,02,140/- which includes surrender of ₹ 20,00,000/- and addition of ₹ 2,140/- on account of cash." 8. The ld. Authorized Representative tried to demonstrate that the assessee has surrendered amount of ₹ 8,00,000/- against the jewellery of ₹ 10,15,397/- found at the time of search. He submitted that ....
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....cker no.70 at ICICI Bank Rs.7,88,075/- The assessee was asked to explain the nature and source of the above cash, jewellery and silver items found in respect of the jewellery and silver items found at residence neither any explanation to prove nature and source have been given nor any documentary evidence to explaining the source of it submitted. On the examination of record it has been found that the assessee has surrendered only the following but has not declared the same in her return of income:- 1. Cash surrendered Rs.7,00,000/- 2. Jewellery and Miscll. Surrendered (Locker no.70 at ICICI Bank) Rs.8,00,000/- 3. Stamp Duty surrendered for land At Sirole Rs.5,00,000/- Rs.20,00,000/- Hence, in the absence of any explana....