TaxTMI 
TaxTMI 
2013 (6) TMI 893
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....spute is interconnected because in respect of jewellery found in course of search of Rs. 14,66,884/- at the residence of the assessee, of Rs. 1,97,700/- in the bed room of the assessee and Rs. 6,79,031/- found from locker No.1870, the AO had accepted the explanation of the assessee to the extent of Rs. 5,14,636/- being the jewellery purchased by the assessee by way of cheque and the AO also accepted that the jewellery to the extent of 500 grams of gold for Rs. 4,00,000/- as Streedhan and in this manner, he accepted the explanation to the extent of Rs. 9,14,636/- and made addition of Rs. 14,28,979/-. Being aggrieved, the assessee carried the matter in appeal before the learned CIT(A) who had confirmed the addition of Rs. 5,52,248/- and delet....
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....lso produced. The appellant claimed that the balance ornaments represent Streedhan and credit should be given for the same as per Circular No.1916. The A. O. has not accepted the explanation of the ornaments belonging to Virbalaben Shah on the ground that all the items as per valuation report of Virbalaben Shah did not match with the items as per Panchnama and that she did not file any wealth tax return. However, he has given credit in the case of the appellant for ornaments purchased as also for the ornaments upto 500 grams of gold as Streedhan. He has not given credit for the other family members as per circular, as the items as per description were that of lady members. On the other hand the appellant has explained that th....
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.... 9,74,636 Unexplained jewellery - (a) 5,52,248 Jewellery found from Bedroom of Prapti Shah and claimed belonging to Lt. Virbalaben Shah - unexplained 1,97,700 Jewellery found from Locker in 1870 relating to Virbalaben 6,79,031 8,76,731 Total unexplained jewellery (a) + (b) 14,28,979 On consideration above position the ornaments pertaining to Virbalaben cannot be considered as unexplained and as such the addition of Rs. 8,76,731/- made on account of such ornaments is not justified and is deleted. For the balance addition, as the A. O. has already considered credit for ornaments purchased by the appellant and credit for ornaments as per Circular, no ....
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....e to the extent of jewellery as per valuation report and Will of Virbalaben and when the same is allowed, the addition made by the AO of Rs. 1,97,700/- being jewellery found from bedroom of the assessee and Rs. 6,79,031/- being jewellery found from locker No.1870 cannot be sustained because the same stands explained by such Will and valuation report of Virbalaben, mother-in-law of the assessee. Regarding second objection of the AO that items are not tallying, we find force in the submissions of the learned AR of the assessee raised before the AO, learned CIT(A) and before us also that over the period of time, items of gold jewellery keep on changing because of remaking and, therefore, gross weight of gold jewellery found in course of search....