TaxTMI 
TaxTMI 
TaxTMI 
2016 (12) TMI 348
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....sale of jewellery at Rs. 1,48,588/-. The case of the assessee was selected for scrutiny and statutory notices under section 143(2) and 142(1) of the Income Tax Act, 1961 were issued and served upon the assessee. During the course of assessment proceedings, the assessee was required to furnish bank statement and other supporting documents. After examining the said bank statement and other records produced by the assessee including balance sheet, the AO noted that the assessee has deposited a sum of Rs. 3,99,000/- on various dates in cash beside depositing two cheques of Rs. 9,89,010/- on 16.2.2008 and Rs. 9,08,000/- on 29.2.2008. The assessee is a house wife (married on 21.2.2007). The balance sheet as on 31.3.2007 filed by the assessee refl....
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.... Regarding the cost of indexation claimed for calculating the long term capital loss, the assessee had submitted five valuation reports dated 17.12.2010 from the approved valuers before the AO. A statement of the assessee was also recorded during the course of assessment proceedings wherein in response to question no.2, the assessee admitted to have sold jewellery however the details of jewellery and information thereof were stated to be known to her husband. Similarly, in reply to question no.3 the assessee had submitted that jewellery comprised of diamond jewellery, silver utensil and gold but it was admitted that since sale of jewelry was made by her husband, she did not know about the exact items sold as of now. In reply to question no.....
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..... 17,929/- on account of interest received by the assessee. The AO observed that during the year the assessee received total interest of Rs. 79,429/- from five parties, the details whereof was given in para 8 of the assessment order and the assessee has offered interest income to the extent of Rs. 61,500/-. Accordingly, brought to tax the balance amount of Rs. 17,929/- by framing the assessment order under section 143(3) dated 29.12.2010 by assessing the income of the assessee at Rs. 42,56,520/- as against the return of income of Rs. 36,930/-. 4. Aggrieved by the order of AO, the assessee preferred first appeal before the ld.CIT(A) who vide para 4.3 of the appellate order dismissed the plea of the assessee by observing and holding as under....
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.....3.2007 and as on 31.3.2008 along with sworn affidavit regarding gifts received from the grandparents and also details of bills for the sale of jewellery. The ld AO has completely ignored these documents and material and did not made any further inquiry either from the jewellery shops where the same were sold or from the grandfather of the assessee whose affidavit affirming the gifts were filed before AO. He had proceeded to pass the assessment order on conjecture and surmises that the assessee has not received any jewellery or precious metals from her grandparents. Similarly, the AO has not even applied his mind to the facts that the jewllery sold was gifted by her grandfather and added the entire amount of sale proceeds citing the reasons....
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....ily on the orders of the authorities below and referred to the various observations given in the impugned order and submitted that the statement of the assessee itself shows that she was not aware of the details of jewellery and hence the presumption of make belief theory cannot be ruled out. 7. We have carefully considered the rival submissions and perused the relevant material placed before us and the orders of authorities below. We find that the assessee got married on 21.2.2007 and as per the material on record, the assessee at the time of marriage has brought with her some jewellery, other precious metals gifted by her grandparents and also cash as per the details given in the balance sheet as at 31.3.2007 filed at pages 2 to 5 of the....