TaxTMI 
TaxTMI 
2026 (6) TMI 485
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....filed their respective as many appeals ITA Nos. 213, 214 & 215/Del/2026; all for assessment year 2017-18, against the Commissioner of Income Tax (Appeals)- 3 (in short, the "CIT(A)"), Gurgaon separate orders, dated 11.11.2025, passed in case Nos. CIT(A), Gurgaon-3/10211/2018- 19, CIT(A), Gurgaon-3/10212/2018-19 & CIT(A), Gurgaon- 3/10216/2018-19, involving proceedings u/s 143(3) r.w.s. 153B(1)(b); respectively. Heard all three assessee's as well as department at length. Case files perused. 2. We advert to the basic relevant facts first of all. The assessees/appellants M/s. Zevraat, a partnership firm, engaged in sale purchase of gold, silver, and utensil items, had two partners namely, Rakesh Narang (appellant in ITA No. 214/Del/2026 ....
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....s herein, we notice that both the learned lower authorities have added unexplained jewellery investments u/s 69 of the Act totaling to Rs. 93.68 lakhs in Shri Rakesh Narang's case and that amounting to Rs. 3,12,22,409/- in Shri Sant Kumar Narang's hands; represented by his legal representative/ widow Smt. Bimla Narang along with cash found/seized of Rs. 2.54 lakhs, respectively. It is in this factual backdrop that all these three assessees have filed their respective appeals before the tribunal. 4. We now proceed to deal with M/s Zevraat/ partnership firm's appeal ITA No. 215/Del/2026 for the sake of convenience and brevity. The first and foremost addition made and sustained in his hands all along is that of Rs. 5 lakhs representing u....
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....ed discussion. Learned counsel further claims that assessee had recorded total sales of Rs. 17,03,97,809/- as on 08.11.2016 as well as in its books. The fact, remains that this last figure turns out to be much more than the retrieved one forming subject matter of our apt adjudication. This is also coupled with the fact that the learned lower authorities have already accepted the minimum figure of Rs. 17.03 (Crores) whilst granting benefit of Rs. 8.55 Crores. This is thus an instance wherein the assessee deserves to be given telescoping benefit of its regular business sales already declared in books as against the addition amount based on incomplete retrieved data making it a clear cut case of double addition. We thus find merit in the asses....
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.... This partnership firm M/s Zevraat's appeal in ITA No. 215/Del/2026 is partly accepted. 8. We now advert to the twin individual assessees Smt. Bimal Devi and Shri Rakesh Narang appeals 213 & 214/Del/2026. There is hardly any dispute that this former appellant represents her late husband Shri. Satpal Narang who also subjected to search action at his residential premises on the first floor of the firm's premises (supra). And also that the learned departmental authorities found seven gold bars of 1 kg each out of which six of them had admittedly been released after due verification since it was proved to their satisfaction that they formed part of the partnership firm's stock in trade. The impugned addition of unexplained investment in g....
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.... 10. We now come to Shri Rakesh Narang's appeal ITA No. 214/Del/2026 wherein he is aggrieved against both the learned lower authorities' respective assessment and lower appellate findings making unexplained investments in jewellery addition(s) of Rs. 12.50 lakhs and Rs. 81.18 lakhs regarding ornaments found from SBI and PNB lockers during search. Mr. Sehgal has filed the assessee's family tree of ten members including himself, wife, sons etc. His case therefore is that the learned lower authorities have nowhere granted benefit of the aforesaid circular (supra). This is indeed coupled with the fact that Smt. Alka Narang/assessee's wife had explained before the learned departmental authorities that total jewellery of 596.040 grams was the fir....