2019 (7) TMI 672

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.... 11.01.2017 for the assessment years 2013-14. 2.The above Tax Case Appeal has been filed raising the following substantial questions of law:- "(i) Whether the Appellate Tribunal is right in deleting the addition towards unexplained investment in jewellery pertaining to 11065 grams on the basis of certain affidavits obtained by the assessee from relatives/family members, is not perverse when the asseessee in his sworn statement has admitted excess jewellery found of 16619.500 grams as his own undisclosed jewellery and accepted unexplained investment in the same and later in sworn affidavit dated 20.12.2012 has reiterated regarding such undisclosed jewellery? (ii) Whether the Appellate Tribunal in right in deleting the ad....

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....ses and residence of the assessee, who are engaged in gold jewellery business. During the course of search 21,456.550 grams of gold and jewellery were seized. The question is as to whether the assessee was able to substantiate by producing the details as regards the gold and jewellery, which were seized. The assessee filed affidavits from 15 persons to substantiate his case. The Assessing Officer and CIT(A) rejected the affidavits on the ground that they were stereo-type affidavits. The Tribunal went into the matter and found that the assessee produced affidavits and explained the gold deposits as that of his relatives and those relatives numbering 15 persons produced their PAN numbers as well as the Wealth Tax returns and VDIS returns. ....

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....e Wealth Tax and VDIS returns of respective persons. Where the assessee asserts that it had received as gold deposits from its family members/relative more than what it was stated at the time of search and such assertion is supported by affidavits and corroborative evidences likes VDIS declaration of the giver/creditor and copies of Wealth Tax returns of the giver/creditors, in our opinion it was incorrect to brush it aside. Lower authorities simply went by a presumption that the claim was an after thought. Gold deposits agreements stipulates a return on investments to the credit and therefore this cannot be deemed gratuitous transactions." 5. With regard to the claim of the assessee in respect of 1042 grams of gold jewellery belonging t....