TaxTMI 
TaxTMI 
2021 (7) TMI 359
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....the this Rs. 40,00,000/- was seized and the balance amount of Rs. 5,65,420/- the source was explained. Thus, the addition confirmed has to be deleted. 3. For these and other ground that may be urged at the time of hearing of the appeal, the appellant prays that the appeal may be allowed." and pleaded that although the assessee has raised these grounds before the ld CIT(A) , due to oversight , these grounds were not raised in form 36 and hence pleaded to admit them in the interest of justice and dispose them on merit. 3. We heard the rival parties and admit the additional grounds . 4. The Ld. AR submitted that this appeal is directed against the inclusion of cash found during the course search to the tune of Rs. 45,65,420/- and alleged undisclosed investment in jewellery to the tune of Rs. 1,81,72,099/-. There was a search under Section 132 of the Act carried out on 07.08.2014 in the premises where the Appellant was residing along with his family members. The cash found was Rs. 45,65,420/- out of which Rs. 40 lakhs was seized. Similarly, gold jewellery/bullion, gold coins, diamond found was .4684640 grams out of which 12,186.55 grams was seized. Silver articles to the rune of 1....
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.... The Appellant has provided evidence with regard to the availability of cash among the family members as enclosed in the Paper Book at Page No.1-23. Even this amount has been fully explained and thus no part of the impugned addition was required to be made. The CIT(A) having accepted the explanation, deleted the addition of Rs. 40 lakhs which was added by the AO. However, with regard to Rs. 5,65,420/- found, though the Appellant had provided explanation with regard to the availability of cash among the family members, declined to delete the addition against which the Appellant is in appeal before the Hon'ble ITAT. 4.1. With regard to the addition towards jewellery of Rs. 1,81,72,099/-, as stated earlier, the value of jewellery has been reduced to Rs. 1,61,42,900/-. While the appeal was pending before the CIT(A), it was brought to the notice of the CIT(A) that rectification application with regard to the valuation of jewellery was pending before the AO, though the very addition was under challenge before him The Appellant made submissions with regard to declaration of jewellery in the hands of the Appellant's father Sri Ravi Kumar Gupta under Section 132(4) of the Act in the searc....
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....s of the Appellant. While declaring the jewellery, the entire jewellery found in addition to what has been declared in the wealth-tax returns by the respective family members had been considered. Thus, the Appellant did not invest any amount in jewellery to justify the impugned addition in his hands. The entire impugned addition made in this regard is accordingly liable to be deleted. In other words, the impugned additions as made, to the extent sustained by the CIT(A) are required to be deleted. Accordingly, it is prayed that the appeal may kindly be allowed. 5. Per contra, the Ld. DR submitted that since the assessee relied on its pending rectification petition before the A O the ld CI(T(A) has disposed the appeal accordingly and hence supported the orders of the lower authorities. 6. We heard the rival submissions and gone through the relevant material. With regard to the first issue, it is seen from page no. 1 of the paperbook dt 11.11.2020, that the assessee has explained the transaction before the lower authorities as under: "Date of search: 07.08.2014 Summary of Cash in Hand in the following persons Cash Book as on 07.08.2014 Name of the Person Amt (Rs.) ALok Gup....
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....t Commission as evidenced in page 28 of the paperbook, wherein Annexure-C- Cash Flow statement was placed. The undisclosed quantity of jewellery quantified by Shri Ravi Kumar Gupta in Annexure-D filed before the Settlement Commission included all the items found in the residential premise of the assessee. The Ld. AR further invited our attention to the paras 16.1, 16.2 and 19.1 of the order of the Hon'ble Settlement Commission, Chennai in Settlement Application no. TN/CN51/2017-18/IT dated 05.10.2018 which are extracted as under: "16.1 Bullion Trading: The PCIT mentioned that in the statement u/s. 132(4) of the Act on 26.08.2014, the applicant admitted undisclosed income of Rs. 60 crores on behalf of his entire group consisting business entities and his family members and subsequently filed a letter dated 26.09.2014 before the DDIT (Inv.) reiterating the above disclosure of Rs. 60 crores. In this regard, the breakup of the disclosure even by the applicant is as under: Shri Ravi Kumar Gupta Rs. 31.43 crores Sonal Vyapar Limited - Bullion disclosed u/s. 132(4) Rs. 13.07 crores Chennai Ferrous P. Ltd., - Bullion disclosed u/s. 132(4) Rs. 15.50 crores Total Rs. 60.00 cro....