TaxTMI 
TaxTMI 
1989 (6) TMI 76
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....dent as also the father of the respondent, namely, Shri Jethalal Nanji. The ITO while completing the assessment of the father brought to tax the entire value of the various assets seized at the different premises during the course of the raid, viz., silver, cash as also the silver coins. He also made simultaneous additions in the hands of the assessee and his brothers although on a protective basis. 4. The total additions made in the hands of the father Shri Jethalal Nanji were the subject-matter of an appeal before the Tribunal and vide order dt. 22nd Aug., 1988 the additions pertaining to the assets seized at various residential premises were deleted. The Tribunal, however, recorded an observation that the sons of Jethalal Nanji would have to prove the nature and source of the various assets found at their residential premises in their individual appeals which were pending before the Tribunal. It is in the aforesaid situation that the present appeal filed by the Department has come up for hearing. 5. The ITO made the addition of Rs. 16,345 being the value of silver coins in the hands of the respondent with the following observations: "On 24th Feb., 1982 there was a raid by ....
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....ived as a gift from his grandmother in the year 1964. The appellant himself has disclosed the value of this 467 silver coins in Part III of the return of income for the asst. yr. 1977-78 onwards. The ITO has considered the cash seized of Rs. 15,500 as belonged to the wife of the appellant but the value of the silver coins were considered as income of the assessee from undisclosed sources. On verification of the facts on record, it is noticed that the contention of the appellant that the value of the silver coins were disclosed in Part III of the return for the asst. yr. 1977-78 are correct. That means the possession of this silver coins were within the knowledge of the Department and no such addition was made in the earlier years on this score. By disclosing the said item/value of the same, the appellant has fully explained the nature of possession of the said silver coins. It seems that the ITO has not considered the facts of the case in its right perspective. The appellant has fully explained the possession of the silver coins by showing it in Part III of the return in the asst. yr. 1977-78 and hence the genuineness of the possession cannot be doubted. In this view of the matter ....
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....f income-tax returns pertaining to asst. yrs. 1977-78 and 1978-79. It was finally submitted that the matter under consideration had to be decided on the "balance of probabilities" since it was not possible to furnish any documentary evidence in respect of the silver coins gifted in 1964 to the assessee by his grandmother. In support of this proposition he placed reliance on the decision of the Ahmedabad Bench of the Tribunal in the case of Chhotalal Vashram vs. ITO (1984) 19 TTJ (Ahd) 287. 10. We have examined the rival submissions and have also perused the orders of the authorities below. It is apparent that the addition in question was made on the ground that the assessee was not in a position to furnish any documentary evidence about the alleged gift made to him by his grandmother in 1964. The tax authorities were also guided by the fact that the Customs authorities had rejected a similar explanation about the "gift" and confiscated the silver coins. It must, however, be appreciated that the customs raid took place on 24th Feb., 1982 and the "gift" was attributed to the year 1964, viz., 18 years ago. It would be nigh impossible for the assessee under these circumstances to fur....
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....ances would have at least shared the "secret" of the "gift" with his own parents if not his brothers etc. It is not possible for us to believe that the assessee at the tender age of 12/13 years was so conversant with the facts of life or capable of understanding the importance of the alleged gift as an adult would have done. 15. Then again the assessee is supposed to be engaged in the business of a "Silver Smith" which also is the business carried on by his brothers and father. In such a situation he would try to convert the silver coins into money by selling them. The assessee, however, stated before the Customs authorities that he had no intention of selling these coins during his life-time on account of love and affection for his late grandmother. If this was the correct position than the coins should have been kept in the residential premises and not the "Shop Premises" as is the finding recorded by the Addl. Collector of Customs Para 11 of his order. We would even go to the extent of saying (on the assumption that the coins were a gift from the grandmother to the assessee) that although the assessee kept the gift as a secret in 1964, there was no reason to do so once he had ....