TaxTMI 
TaxTMI 
2016 (12) TMI 1573
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.... in making an addition of Rs. 4,44,829/- to the returned income for the assessee and the learned CIT (A) had erred in confirming the same. On the facts and circumstances of the case and the lad applicable, the addition as made/sustained was wholly erroneous both on facts and law and is to be deleted; & (2) that the interest u/ss. 234A, 234B and 234C of the Act having been levied erroneously is to be deleted. 3. Briefly stated, the facts of the issue are as follows: The assessee is an individual engaged in the business of pawn broking and money lending. A search and seizure operation u/s 132 of the Act was conducted in the case of M/s. Mangalchand Banthia and others on 12.3.2012 and, accordingly, the assessee was also covered by ....
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....ng officer for the elaborate reasons set out by her in the assessment order under dispute and, accordingly, made the following additions on the returned income: (i) Unexplained gold Rs.57,59,120.98 (ii) Unexplained silver 12,54,000.00 (iii) Rate difference in gold 1,51,708.00 (iv) Rate difference in silver 2,80,000.00 Total Rs.74,44,829.00 4. Aggrieved, the assessee took up the issue with the CIT (A) for consideration. After having considered the assessee's submission and also reliance placed by the assessee on the (i) Board's Circular No.1916 dated 11.5.1994 and (ii) the ruling of the Hon'ble jurisdictional High Court in the case of Pati Devi reported in 240 ITR 727, the CIT (A), the CIT (A) had u....
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....and silver in the hands of the assessee. On proper appreciation of facts, the addition as made/sustained is not warranted in the hands of the assessee and the same is to be deleted; and - That in any case and without prejudice, the value as adopted for making/sustaining the addition is excessive. In conclusion, it was submitted that the authorities were not justified in making a huge addition in the hands of the assessee which deserves to be deleted. 6. On the other hand, the learned DR present supported the stand of the authorities below and, accordingly, pleaded that as there was no merit in the argument of the assessee's counsel, the assessee's appeal requires to be dismissed. 7. We have carefully considered the rival s....
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....it does not mean the assessee should not explain the sources for the total quantum and account the entire gold and silver found in his books. Hence, the submission given by the assessee is rejected. [source: Para 5(b) of the asst. order]. However, on a careful perusal of the Instructions No.1916 of the Board, we find that the assessing officer had not verified/examined to ascertain (i) as to whether the family members of the assessee were wealth tax assesses and if so, (ii) as to whether the gold jewellery and ornaments found during the course of search were excess of the gross weight admitted in their wealth-tax returns. For ready reference, the operational portions of the Instruction No.1916 of the Board are reproduced as under: "Insta....
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.... of Shri M.Vimal Kumar and Sri M Sanjay Kumar v. DCIT, CC 2(1), Bangalore in ITA Nos.642 & 643/Bang/2015 dated 14.8.2015. After due consideration of the rival submissions and also extensively quoting the ruling of the Hon'ble Gujarat High Court in the case of Ratanlal Vyaparilal Jain [339 ITR 351 (Guj)] on a similar issue, the earlier Bench had recorded its findings as under: "08. We are therefore of the opinion that assessee can always claim exclusion from undisclosed jewellery the quantum of jewellery mentioned in the said circular. However, the circular allows only 100 gms per male member, 250 gms for unmarried lady and 500 gms for married lady in the family. The list mentioned by the assessee claims 200 gms each for himself and....
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....e which is increased but it is the weight which is considered reasonable looking to the social circumstances prevailing in the country. ............." 11. In view of the facts and circumstances of the issue as deliberated upon in the fore-going paragraphs and in consonance with the (i) Instruction No.1916 of the CBDT; (ii) the findings of the earlier Bench of this Tribunal (supra); and (iii) the ruling of the Hon'ble jurisdictional High Court (supra), we are of the view that the issue should be restored on the file of the AO for fresh consideration as the details furnished by the assessee's counsel during the course of hearing before us as well as the break-up of 2100 gms furnished by the assessee vide his letter dated 11.4.2012 [Refer: ....