2019 (11) TMI 63

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....ing heard, we are of the considered view that following substantial questions of law would arise for our consideration: (i) Whether tribunal was correct and justified in law in arriving at a conclusion that items sold by the appellants were different from the jewellery declared? (ii) Whether the appellants had proved beyond reasonable doubts that sale of jewellery/goods were out of the declaration made under the Voluntary Disclosure of Income Scheme - VDIS? BACKGROUND OF THE CASE: 2. Appellants in the respective appeals are HUF and for the assessment year 1998-99 filed its return reporting interest income and said returns came to be processed under Section 143(3) of Income Tax Act, 1961 (for short 'Act') by making ad....

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....he contention of Sri.A.Shankar, learned counsel appearing for appellants that authorities below as well as tribunal committed a serious error in arriving at a conclusion that there was difference between the quantity of declared items and sold items without considering the fact that appellants had declared gold jewellery, silver and diamonds embedded in the precious metals under the VDIS Scheme-1997, which has been accepted by the Revenue upon payment of requisite taxes and as such, doubting the transaction afresh would not arise. He would also contend that the appellants had filed the copies of VDIS declaration and valuation report which described each item of jewellery along with the gross and net weight, purity of the jewellery and the c....

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....IS the assessees had declared the gold jewellery, diamond jewellery, etc. and the claim of the assessees before the Assessing Officer was that he/she converted the jewellery items into gold and silver bullion after removing the diamonds and had sold the same. 9. As noticed herein above, the order of remand which came to be passed was based on following the decision of the Coordinate Bench rendered in SMT. KAILASHI DEVI AGARWAL VS. ITO in ITA No.186/2004 rendered on 22.09.2008 and following the same the case of the assessees in question namely, appellants herein were also remanded. The ground on which the remand order came to be passed as could be discerned from the order dated 22.09.2008 passed in ITA No.186/2004 reads: "10. It ....

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....has been accepted upon the appellants paying requisite taxes. It is the specific case of assessees that in order to fund its capital has converted the jewellery acquired into standard bullion form and same was sold for which the sale bills had been tendered before the Assessing Officer. In fact, the sale proceeds has been received by the assessees through its bank which is not disputed by the Revenue. The invoice for the conversion of the gold and silver jewellery to bullion form demonstrates or establishes the gross weight of the jewellery converted and the net weight received by the appellants. The documents filed in support of the same were available before the Assessing Officer and it is on record, which is not in dispute. In fact, the ....

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....en disputed and obviously for the reason sale having been correlated on the assaying of the jewellery. In fact, it has been brought to the notice of the tribunal that jewellery declared was of lower purity and as such on conversion i.e., upon assaying purity had reduced proportionately, which has been erroneously ignored by the tribunal. 12. In fact, the tribunal erred in not considering the fact that under similar circumstances in the following cases rendered in respect of the assessees who were similarly placed, had been accepted and the appeals filed by the respective assessees had been allowed. The details of the orders so passed by the tribunal are as under: Appeal Number Appellant Resp Order Dt ITA.77/Bang/2016 Sr....