TaxTMI 
TaxTMI 
2020 (10) TMI 455
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....case, an addition on account of jewellery belonging to family members was justified when the entire jewellery was explained and supported." 3. Insofar as admission of the addition ground is concerned, we find that the Hon'ble Supreme Court in National Thermal Power Company Ltd. Vs. CIT (1998) 229 ITR 383 (SC) has observed that "the purpose of the assessment proceedings before the taxing authorities is to assess correctly the tax liability of an assessee in accordance with law. If, for example, as a result of a judicial decision given while the appeal is pending before the Tribunal, it is found that a non-taxable item is taxed or a permissible deduction is denied, we do not see any reason why the assessee should be prevented from raising ....
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....Shivshakti Pratisthan (PNM trust) of which he was President. The assessee submitted that he was arranging Kashi Yatra for the poor senior citizens of the locality. For that purpose, the trust collected certain amounts which totalled upto Rs. 10.00 lakh. It was such amount that was kept at his residence. During the course of search action, some persons were examined by the Authorised Officer to ascertain the claim of the assessee. Such people admitted that they paid between Rs. 500/- to Rs. 700/- to PNM trust. During the course of the assessment proceedings, the assessee was called upon to produce books of account and certain other documents of the trust for verifying the availability of cash of Rs. 10.00 lakh. The assessee could only furnis....
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....O did not dispute the availability of cash to the extent of Rs. 1,60,400/-. As regards the availability of cash of Rs. 10.00 lakh, the assessee submitted that such cash belonged to PNM trust of which he was President. When called upon to produce books of account of the trust, the assessee failed to do so and further submitted before the ld. CIT(A) that he had tendered his resignation as President of the trust and the trust had refused to hand over the books to him. 7. Section 132(4A) provides that : `Where any money is found in the possession or control of any person in the course of a search, it may be presumed- (i) that such money belongs to such person;...'. This provision lays down that finding of cash etc. during the course of searc....
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.... of trust was established and hence the contention should have been accepted, is without merit. The fact that the trust was existing or the trust gave some explanation is irrelevant insofar as the availability of cash of Rs. 10.00 lakh with the assessee is concerned. The only relevant criteria to come out of the rigour of section 132(4A) was to establish to the satisfaction of the AO that cash of Rs. 10.00 lakh found from the residence of the assessee belonged to the trust. Since the primary factor of the availability of cash of Rs. 10.00 lakh remained unproved with the help of books of account of the trust, the other arguments about the existence of trust or tendering resignation etc., pale into insignificance. We, therefore, uphold the im....
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.... He came to hold that, at best, addition on account of unexplained investment in jewellery could be made if some investment was made during the year under consideration. That is how, he remitted the matter to the AO for verifying if the bank lockers were operated during the year and then decide the issue accordingly. Aggrieved thereby, the assessee has come up in appeal before the Tribunal. 11. We have heard the rival submissions and cogitated over the relevant material on record. It is seen that the ld. CIT(A) has restored the matter to the AO giving certain directions. Section 251(1), after amendment by the Finance Act, 2001, does not empower CIT(A) to restore the matter to the AO for verification and a fresh decision. He can call for ....
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....y of which has also been placed at pages 7 onwards of the paper book. Page 15 contains summary of such jewellery found at the residence of the assessee, which comes to Rs. 20,53,987/-. It is thus seen that the authorities below mixed up the jewellery found from two separate lockers and that at the residential premises of the assessee and proceeded to decide the issue without clarifying themselves about the true factual scenario of the issue. As against that, the ld. AR argued that jewellery found from Locker No.125 of Bank of Maharashtra pertains to Goddess Laxmimata. As regards the jewellery found from Locker No.209 of Bank of Maharashtra and that found physically at the residence of the assessee, she submitted that the same pertained to f....