TaxTMI 
TaxTMI 
2023 (4) TMI 694
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....dition of Rs. 9,98,815/- representing alleged unexplained gold jewelry found at the time of search and brought to tax u/s 69A r.w.s 115BBE of the Income-tax Act, 1961 [the Act, for short]. 3. Briefly stated, the facts of the case are that search was conducted at the premises of the assessee on 06.12.2016. As a result of search, certain documents were seized from the residence of the assessee which represented vouchers for sale of old jewellery made by the assessee and her family members, 4. The sale of jewelry which is under dispute is the sale made to M/s Arjun Traders from whom receipt on account of sale of jewelry have been shown by the assessee for Rs. 4,99,963/- on 03.08.2016 for sale of old gold ornaments weighing 190 gms and fo....
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....deposit entries indicating activity of providing accommodation entries In the case of assessee cheque of Rs.499122 was cleared on 24.05.2016 from PNB A/c No.4184002100030836. The availability of source of funds was receipt RTGS of Rs.4.95 lacs on same day from other account of M/s Arjun Traders maintained with Central Bank of India no. 1041730339. On 24.05.2016 itself Rs.9,90,000/- were deposited in cash out of which RTGS of 495 las was made to its another account with PNB from which cheque was issued to assessee. Hence cash routed from one bank of party to another for issuing cheque only to divert the nexus In the same account cash of Rs.5,05,000/- has been deposited on 03.08.2016 before RTGS of Rs.498972/- on the same da....
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....y, on the other hand, the assessee could not prove the acquisition and existence of jewellery which is alleged to be sold. No wealth tax return have ever been filed by assessee (Although in order to cover up the wealth tax returns of years under assessment have been attempted to be filed manually but it was clarified that the returns of wealth filed during assessment proceedings are treated as nonest being not filed in response to notice. No evidence of purchase / gift etc filed during assessment proceedings (although during investigation proceedings photographers were stated to be produced but neither such evidences were received from investigation wing not provided by assessee during assessment proceedings Durin....
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....t funds & she had managed to help her husband to reverse the entries taken from other persons at the time of execution of purchase deed of property at Pearl Omaxe Complex, so she adopted the method of accommodation entry for repayment to these persons. Accordingly an amount of Rs.9,98,815/- (Rs.499963 + Rs.499122/-) is held to be income from undisclosed sources & is hereby added u/s 69A of I.T. Act to the income of assessee. Tax is to be computed u/s 115BBE of I.T.Act Penalty proceeding u/s 271AAB of the 1. T. Act, is initiated separately." 8. The assessee carried the matter before the ld. CIT(A) but without any success. 9. Before us, the ld. counsel for the assessee vehemently stated that the Assessing Officer was asking the....
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....ts on record show that in response to summons u/s 131(1A) of the Act, M/s Arjun Traders submitted its reply along with copy of Income tax Return, computation of income, balance sheet, Profit and Loss Account along with all Annexures for A.Ys 2016- 17 and 2017-18 along with copies of all bank account statements from 01.04.2016 to 30.09.2016 along with copy of stock register and copy of ledger account of purchase and sale. 15. With these evidences on record submitted before the Investigation Wing, it can be safely presumed that M/s Arjun Traders is a regular assessee. Therefore, it was incumbent upon the Assessing Officer to make direct enquiries from the officer of M/s Arjun Traders if it did not appear before the Assessing Officer during....