TaxTMI 
TaxTMI 
2023 (2) TMI 172
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....Act'), in the case of assessee's husband on 17.08.2017. In the course of search, gold jewellery and diamond jewellery were found from the master bedroom located at the first floor of the premises of the assessee's husband. Statement under section 132(4) of the Act was recorded by the AO with reference to gold and diamond jewellery found at the time of search. In answer to question No.39 it was accepted by the assessee that the quantum of gold jewellery found was 1358.06 gms. Gross Wt. and 1183.18 gms. net Wt. Quantum of diamond jewellery found was 32.47 cts. In the answer to question No.39, the assessee also submitted that the gold and diamond jewellery belonged to the assessee and some of the jewellery was received by the assessee during h....
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....e bills are at page Nos.35 to 37 of the assessee's Paper Book. Purchase of jewellery (gold and diamond) as on 03.08.2009 and the value of jewellery as on 03.08.2009 was Rs.11,88,206/-. 4. In the course of assessment proceedings, the AO noticed that as declared by the assessee's husband in reply to question No.41 of the statement recorded at the time of search of offering a sum of Rs.28,63,136/- as undisclosed income on account of investment in jewellery, there was no declaration in the return of income filed in response to the notice issued under section 153C of the Act. 5. The assessee submitted the reasons why such a declaration was not made in the return of income by pointing out that as per your valuation report, the jewellery of ....
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....) 100 Total 1300 The assessee submitted that all the above 5 members were living in one and the same house. Since the jewellery held (1183.126 gms) is well within the limit of 1300 gms of jewellery permitted as per Board Circular, the assessee submitted that she has satisfactorily explained the source of gold jewellery. In support of the aforesaid contention, the assessee relied on the decision of Tribunal in the case of Smt.Ritu Bajaj Vs Dy. C.I.T (Central Circle-Delhi) ITAT "SMC" Bench, New Delhi. Besides the above, the assessee also relied on the fact that part of the jewellery was acquired in the year 2009 and some of the jewellery were obtained at the time of marriage. 6. The AO however held that the assessee in her repl....
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.... the Act from her in respect of the alleged jewellery found which in fact partly belonged to her husband and other family members. It was pointed out that it is only her husband whose statement was recorded u/s.132(4) of the Act and that she has not made any admission during the search. The assessee reiterated submissions made during assessment proceedings. The assessee also submitted that the valuation of jewellery could not have been done at the gold rates prevailing at the time of search as the jewellery was acquired over several past years. The gist of the submissions of the assessee is as follows: • The search was conducted in case of her spouse and the seizure was in his case. She had neither given any statement during se....
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....that the Circular of the CBDT is only with regard to seizure and cannot be extended to the explanation of the source of jewellery. The CIT(A) also held that the assessee failed to bring on evidence to show the jewellery was acquired by her at the time of marriage. The CIT(A) accordingly confirmed the order of the AO. 9. Aggrieved by the order of the CIT(A), the assessee is in appeal before the Tribunal. I have heard the rival submissions. Learned Counsel for the assessee reiterated stand of the assessee as put forth before the Revenue Authorities. Learned DR relied on the order of the CIT(A). 10. The impugned addition is made under section 69 of the Act. The burden under section 69 of the Act that lies on the assessee is to give satis....
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....s evidence has been completely ignored by the Revenue authorities. When I look at the assessee and her family member's credit worthiness, I find that as evidenced by the return of incomes filed by them the position is as follows: Statement showing the calculation of Rate per gram adopted by the valuer Particulars Jewellery inventoried during Search proceedings 1183.18 grams Jewellery treated as Unexplained by the AO 620.666 grams Addition made on account of unexplained jewellery Rs.28,63,136 Value per gram considered by the department including precious metals Rs.4613.006 per gram Statement showing the creditworthiness of the assessee's family and jewellery purchased Jewellery in....