2024 (1) TMI 1569

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....)-18, Chennai [CIT(A)] on 20.03.2023 in the matter of enhancement made in an order passed u/s 250(6) of the Act on 18.10.2022. The grounds taken by the assessee read as under: - 1. The order of Ld. CIT(A) is wrong, illegal and opposed to facts of the case. 2. The Learned CIT(A)erred in passing the order without due consideration of facts and submissions, which is bad in law. 3. The Learned CIT(A) failed to understand the fact that the Appellant had satisfactorily submitted all the relevant details, documents and evidences in support of all the issues raised by the Learned CIT(A) in the order. 4. The Learned CIT(A) erred by levying penalty u/s 271(1)(c) for the alleged LTCG on enhanced amounts of articles ....

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....o search action on 19.04.2012. The returned income of Rs.9.39 Lacs as filed by the assessee was assessed at Rs.187.92 Lacs which travelled up to the level of Tribunal wherein the assessment was restored back to Ld. AO for re-adjudication after bringing on record the incriminating material, if any, found in the course of search. The Ld. AO reframed assessment on 17.10.2018 at Rs.170.83 Lacs after certain additions of excess gold and diamond jewellery and Ld. AO also determined long term capital gain on silver articles and jewellery for Rs.21 Lacs. 3.2 The assessee's further appeal was disposed-off by Ld. CIT(A) vide order dated 18.10.2022. The Ld. CIT(A) allowed partial relief against gold jewellery addition. The deficit of silver was fou....

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....ntended by the assessee that there was shortage of silver articles during the course of search in comparison to silver articles declared in the wealth tax returns. The shortage was sold by the assessee which was used to purchase gold and diamond jewellery. Accepting the same, the bench directed Ld. AO to allow telescoping benefit and delete additions of excess gold and diamond jewellery. Accordingly, the appeal was allowed. However, the assessee has assailed the penalty as levied by Ld. CIT(A) on enhancement on account of gains on silver articles. Our findings and Adjudication 4. From the facts, it would emerge that there is actually shortage of silver article to the extent of 97.735 Kg in comparison to silver articles declared in the....