2016 (7) TMI 1529

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....53,63,591/- towards undisclosed investment in jewellery. 3. Shri Supriyo Pal, ld. Departmental Representative submitted that during the course of search operation in the premises of the assessee, unaccounted gold jewellery of 6136.900 gms was seized. The Government approved valuer valued the cost of the jewellery at Rs. 1,69,36,121/-. In the valuation report, it was shown that jewellery valuing Rs. 16,55,092/- and Rs. 37,08,499/- belongs to the assessee. During the course of search operation a statement was recorded from Shri Saravana Arul Selvarathinam, husband of the assessee. According to the ld. DR, no wealth tax return was filed by the assessee and her husband. The only explanation of the assessee was that her husband Shri Saravana ....

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....lery disclosed under VDIS. According to the ld. DR, since the assessee claimed that the bullion found at the residence was stock-in-trade of the jewellery business, the same has to be reflected in the books of account of the jewellery business. Therefore, the gold bar found during the course of search operation at the residential premises cannot be part of the jewellery declared by the assessee's mother-inlaw under VDIS. The ld. DR further submitted that the value of the jewellery said to be declared by the assessee's mother-in-law is an afterthought. The ld. DR further submitted that the assessee herself claimed before the Assessing Officer that the jewellery belongs to her mother-in-law to the extent of 2083.80gms was melted and utilized ....

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.... declared 3650 gms of gold jewellery under VDIS. The Assessing Officer rejected this claim of the assessee on the ground that the item of jewellery mentioned in the VDIS does not match with the inventory of the jewellery seized during the course of search operation. This Tribunal is of the considered opinion that fashion in jewellery is changing day by day and it is the practice of every lady to change the pattern of jewellery in accordance with the latest trend. Therefore, what is to be seen is whether the quantum of jewellery declared matches with the jewellery found during the course of search operation. Therefore, this Tribunal is of the considered opinion that when the assessee's mother-in-law Late Smt. Prema declared 3650 gms of gold ....