TaxTMI 
TaxTMI 
2024 (9) TMI 337
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....tances of the case. (ii) That in absence of any adverse material or evidence in support of the allegation that jewellery so found was acquired or purchased in the year under reference, the invocation of provisions of section 69A and consequential addition without even considering the status of the family is highly arbitrary and misconceived. (iii) That the Appellant being part of a joint family and total jewellery of the family found during the course of search being for common use and acquired from common pool of funds is fully supported from documentary evidences in the form of bills/invoices/will and other corroborative and circumstantial evidences, the impugned addition u/s 69A is improper and unjustified. (iv) That the source of jewellery found and seized during the search being fully explained and same being accumulated in considerable period of time on account of self-acquisition, gifts, ancestral jewellery and streedhan; there is no case of any unexplained jewellery in terms of section 69A of the Income Tax Act, 1961. 2. That in any case, the valuation of jewellery so found being highly excessive and irrational and appellant having object....
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....tered with Sub Registrar, Hauz Khaz, New Delhi. It was also contended that Punihani family received gifts on various auspicious occasions as can be verified from the facts that Smt. Bawniet Kaur received gifts in the form of jewellery on the occasion of her marriage from various members of her family. It was also submitted that in the course of search as a matter of fact that gift deed was found which evidenced that 1 kg of gold jewellery was received from her brother Shri Guneet Singh on the occasion of her marriage. It was also contended that Smt. Gurpreet Kaur has been married for about 32 years Smt. Avniet Kaur has been married for about 28 years and Smt. Jaspreet Kaur has been married for about 25 years and have accumulated jewellery over their married life. Therefore, it was contended that jewellery accumulated by a lady over her married life even if in excess of limits prescribed under Instruction No.1916 cannot be added as undisclosed investment for which the assessees have relied on the decision of the Hon'ble Delhi High Court in the case of Ashok Chadha Vs. ITO 20 taxmann.com 387 and Sushila Devi Vs. CIT (WP No.7620/2011). Not convinced with the submissions of the assesse....
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....of the members is enclosed at page 24 of the paper book. Ld. Counsel submits that at this juncture, it is important to highlight the financial status and background of the Punihani Family in order to appreciate the facts of the case. The Punihani family is a highly reputed business family enjoys a special status in the society. The family members are declaring decent income in the ITR and the income chart of the family is extracted at page 13 to 15 of the CIT(A) order. It is submitted that it is trite law that the reasonableness of the jewellery and valuable things found in the search is to be seen keeping in mind the financial position and social status of the family. 7. Ld. Counsel submits that the search party during the course of search conducted at various premises along with bank lockers found aggregate jewellery weighing 15,607.32 grams of gold and 1690.82 carats of diamonds. As per the panchnama, the jewellery so found is identified amongst the family members as under. The copies of valuation reports prepared at the time of search are enclosed at page 28 - 47 of the paper book: Name of Assessee Gold Diamond (Net value in grams) (Net value in Carats) Shr....
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.... the family. The CIT(A) in total disregard to the instructions issued by the CBDT has failed to provide the benefit of this circular in respect of all the family members. The chart showing the minimum entitlement of each of the family members is enclosed at page 27 of the paper book. The Assessing Officer and CIT(A) has duly accepted the fact of the gift of jewellery of 1000 grams received by the appellant from her brother on the occasion of her marriage. The factual position to this effect is also substantiated from the Gift Deed which was found and seized during the course of search and was marked at page 88 of Annexure 4 by team AP-4 of the search party. 9. The table showing jewellery found and that explained by the Appellant is as under: Particulars Net Gold (in grams) Diamond (in Carats) Total jewellery found during search [As per Pachnama] 14,952 1,676 Less: Jewellery explained by the Appellant 14,122 1,864 Balance short/excess jewellery 830 -188 Rates applied by the Department Valuer @Rs.3300 per gram @Rs.25,000 per carat Value of Short/ExcessJewellery 27,39,000 -47,00,000 From the above details, it is self-evident ....
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....decisions for the proposition that the gold jewellery has to be considered family as a whole. a) Nirmal Kumar Minda Vs. ACIT [ITA No.1151/DEL/2020] [Dt. 03/05/2023] b) Smt. Bommana Swarna Rekha Vs. ACIT ][2005] 94 TTJ 885 (Visakhapatnam) c) Amith Kumar Bethala Vs. DCIT (ITAT Bangalore) (ITA d) G.C. Bafna Vs. DCIT [2004] 90 ITD 115 (Pune) (TM). 13. On the other hand, the Ld. DR strongly supported the orders of the authorities below. 14. Heard rival submissions, perused the orders of the authorities below and the evidences furnished before us. 15. The main plank of arguments of the Ld. Counsel is that all the family members of the Punihani are joint family members and, therefore, should be considered as one single unit. On perusal of the statements recorded from the family members of the assessees during search the family members have deposed that the jewellery found were either belonging to them or to their family members/relatives. This shows that all the family members comprising of 14 persons are from joint family staying together. We further observed that sister-in-law of Smt. Gurpreet Kaur who is an NRI occasionally coming to India a....
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....al explained Jewellery held by the family members 14,122 1,864 17. We find that assessee has filed Annexure 4 & 5 containing purchase bills date wise, assessee wise, quantity wise and mode of payments thereon which are reproduced hereunder: Details of Jewellery Bills along with payment details: - Details of Bills of Jewellery paid through Bank: 18. As could be observed from the above Annexures the assessee was able to explain the jewellery to the extent of 9,522 gms by way of purchase bills and mode of payments thereon. It is not the case of the Revenue that assessee has made payments in cash for purchase of jewellery out of undisclosed sources of income. Further assessees explanation that they have converted diamonds partly to gold jewellery is a plausible explanation which cannot be brushed aside as it is the usual custom and practice of the household ladies to do so. 19. Considering the overall family status and community of the assessees holding of jewellery of 9,522 gms which is also supported by purchase bills stands clearly explained. As could be seen from the above table there is excess diamonds to the extent of 188 carats (valued at Rs. -47,00,000/-) a....
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....preet 324.50 320.53 Kaur Cheque No. 2,27,257 mentioned on Bill at page 66 Cheque No, 1,24,000 mentioned on Bill at Bill at Pg 73 page 73 12 604 27-11-2004 Chawla Jewellers Bill at Pg 81 Smt. Gurpreet Kaur Cheque No, 105.00 26.45 2,50,000 mentioned on Bill at page 81 Total [A] 5,095 1,236 2,28,16,779 Document 2 Details of Cash Bills of Jewellery: 'B' S Ne Involve No. Net Gold Diamond Dale Party Assessee Amount (Rs.) Remarks Jin grams in carats 1 272 23-03-2003 M Raj S Sons Jewellers Sh. Amarjeet Singh 81 50,188 Cash payments M Rai Sons 3 43 14-03-2011 Motiwala Jewellers Sh. Amarjeet Singh 153 41 7,00,656 Cash payments 4 5 in 44 23-03-2011 1 04-04-2014 Motiwala Jewellers Motiwala Jewellers Sh. Amarjeet Singh 74-52 333 6,92.338 Cash payments Sh. Amarjeet Singh 49-55 160 6,41,188 Cash payments 6 952 17-10-2017 Chawla Jewellers Smt. Jaspreet Kaur PA-SE 00 1,97,760 Cash payments 7 1750 10-03-2017 Chawla Jewellers Sh. Narinder Singh 87 14 5,00,000 Cash payments 8....