2019 (10) TMI 653

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.... 1,22,66,225/- by the CIT(A) as made by the Assessing Officer (AO) towards un-disclosed jewellery declared by the assessee during the search proceedings u/s 132 of the Act. 3. The facts in brief are that a search operation u/s.132(1) of the Income Tax Act (Act) was conducted on 03-12-2010. Assessee filed the original return of income on 30-09-2011 declaring total income at Rs. 27,73,910/- which was processed u/s.143(1) of the Act. Thereafter, notice u/s.153A of the Act was issued to the assessee to file return of income. During the course of assessment proceedings AO noticed that, certain undisclosed jewellery found during the course of search action and offered as income during search, was not offered to tax in the return filed pursuant....

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....in the current year out of un-accounted income and offered the same to tax however the same was not declared in the return filed in response to notice u/s.153A of the Act. The CIT(A) also noted that the appellant produced a bill dt.03-04-2008 before the AO evidencing the purchase from M/s.Ronak Gems Pvt. Ltd., showing purchase of diamond jewellery for Rs. 35,33,867/- by Mrs. Alpana Dangi and it was further stated that payment for the same had been made through cheque of IDBI Bank in the name of Mrs.Alpana Dangi. Assessee also produced a valuation report from Mahavir Lodha dt.04-04-2011, wherein a necklace weighing 95.200 grams, with net weight of 84.766 grams had been valued at Rs. 98,16,744/-. The CIT(A) also noted that assessee contended ....

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....Ld.AR vehemently submitted before us that the disclosure was made of the said diamond jewellery in the statement u/s.132(4) of the Act, recorded during the search. However, at the time of filing of return, when the assessee found that same was duly disclosed in the Wealth Tax Return of his wife and payment was made from the bank account of the assessee that was not offered to tax in the return filed in response to notice u/s.153A of the Act. Ld.AR submitted that the said statement has no evidentiary value as the discrepancy was duly explained during the course of assessment proceedings as well as in the remand proceedings. The ld AR contended that even the AO admitted that number of big and small diamonds were tally however there was some d....

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....he disclosure in the search has been duly explained with reference to bills and vouchers. 6. Ld. DR heavily relied on the orders of the authorities below and submitted that the disclosure was made by the assessee during the course of search while recording statement u/s.132(4) of the Act. Ld. DR also submitted that the necklace was found during the course of search and the assessee admitted that it was bought during the year out of undisclosed income, however, later on assessee stated that the same was bought out of the disclosed sources and tried to explain the same with the bills issued by the sellers and payment details. Therefore, the same is an after thought and cannot be accepted. Hence, the order of CIT(A) needs to be affirmed. ....