Kirti Singh, Bulandshahr V. ACIT Central Circle-II, Noida

ITA 1067/DEL/2023

• Counselvise Citation: [2023] 101 COUNSELVISE.COM (IT) 9641 (ITAT-DELHI)
• Duration Of Justice: 7 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-12-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 17-10-2023
• Assessment Year: 2021-2022
• Appeal Filed On: 11-04-2023
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: MOHIT CHOUDHARY
• Section: 90; 43; 13; 22

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “C” DELHI BEFORE SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER & SHRI YOGESH KUMAR US, JUDICIAL MEMBER I.T.As. No.977 & 1067/DEL/2023 Assessment Year 2021-22 & 2021-22 Kirti Singh, 83A, Amba Enclave, Bulandshahr, Panni Nagar, Near Sugar Mill, Bulandshahr. Vs. Assistant Commissioner of Income Tax, Central Circle-II, Noida. TAN/PAN: BCIPS0612K (Appellant) (Respondent) Appellant by: Shri Mohit Choudhary, CA Shri Harish Choudhary, CA Ms. Mitika Choudhary, Adv. Ms. Neetu Jain, CA Shri Ankur Rastogi Respondent by: Mr. Waseem Arshand, CIT(DR) Date of hearing: 18 10 2023 Date of pronouncement: 07 12 2023 O R D E R PER PRADIP KUMAR KEDIA, A.M.: T he c a pt i o ne d a pp e a l s ha ve be en f i l e d b y th e a sse ssee a g a i n st t he or de r o f t he C o mm i ss io ne r o f I nc o m e T a x ( A pp e a ls) , K a np ur - 4 [‘ C IT (A ) ’ in s h o rt ] d a t e d 2 7. 0 2 . 20 2 3 ar i si n g f ro m the a ss e s s me n t or d e r d at e d 2 8. 0 9 . 202 2 p a ss e d b y th e A s se s s in g O f f ic e r un de r S ec t i on 1 4 3( 3 ) o f t he I nc o m e T a x A c t, 1 96 1 ( t he A c t) c on c e r n i n g A Y 202 1- 2 2. 2. W h e n t h e ma t te r w a s c al l e d for h e ar i n g, t h e l d . c o u n se l f or t h e a ss es se e po in t e d o ut t h a t b ot h th e c a pt i o n e d ap pe als c a rr y sa me c au se o f a c t io n a n d t w o a pp ea l s ha ve b ee n fi l ed i nadv e r te n t l y. T h e I.T.As.977 & 1067/Del/2023 2 l d. c o un se l t hu s su b m i t s t h at I TA N o . 97 7 /D e l / 2 02 3 ma y be tr e at e d a s w i t h d r a w n a s pe r t he w ri t t en a p p l i c a t io n i n t hi s re g a r d . 3. I n vi e w o f th e s ub mi ssi on m a de , I TA N o. 9 77/ D e l/ 20 23 i s di s m i ss e d a s w i t h dr aw n . 4. W e n ow ad v e rt to IT A N o . 10 6 7/ D e l / 20 23 c on c e rn in g A sse s s me nt Y e ar 2 02 1- 2 2 fo r a dj u d i c a t i o n o n me r it s. 5. B ri e f l y s t a t e d, a se a rc h a n d sei z u r e a c t i o n u n d er S e c t io n 1 3 2 o f t h e A c t w a s c on d uc t e d o n 2 7. 11 . 2 0 2 0 a t t he pr e m is e s o f M / s. S hi v S ha kt i C o n st r u c t i o n w hi c h i nc l u d e d t he a s se s s ee h ere i n . D uri n g t he c ou r s e o f s e ar ch a t t h e p re mi se s oc c upi e d by t h e a ss es see a t 80 3, Cr e sc e n t Co ur t , Ja yp ee G re e n s G r e a t e r N oi d a , j e w el ler y w o r t h Rs. 8 1 , 12, 0 9 0/ - ( g r o ss w e i g h t 22 17. 3 0 g m s ) w as fo u nd a t t h e re s i d e n c e w he re a s j e w el l e r y w or th Rs. 1 2, 06 , 00 0 / - ( gr o ss w e i g ht 26 1 . 90 0 g m s. ) w as f ou n d i n th e l o c k e r . T he gro ss w ei g h t o f t o t al j ew e l le r y t h us f ou n d w a s 24 7 9. 2 0 g ms . T he r e t ur n fil ed by t he a ss es se e fo r A ss e s s m e nt Y e a r 20 21 - 22 w a s t h us c e nt ra l i z e d w i t h gr o up c a s es a nd t h e a ss e s s me n t w a s f r a me d u nd e r S e ct io n 1 43 (3 ) o f t he A c t . T h e so u rc e o f j ew e l le r y in t h e c o u r se o f the a ss e s s m e nt w a s i nq u i r e d . I t w a s p o i n t e d o ut t o A O t ha t j e w e ll e r y pe r t a i n s t o t h e a ss es se e , h e r h us b an d, tw o s o n s, mo th e r - i n - l aw an d t w o s i st e r - i n - l aw s. I n t he l i g ht o f t h e C B D T I n st ru ct i on N o. 1 9 1 6 d at e d 11 . 0 5. 1 9 9 4 , t h e A sse s si ng O f fi c e r gr a n t e d t h e b en e fi t o f a l l o w ab le l i m i t t o d i ffe r e n t m e m be r s ex cl ud i n g s i st er -i n- l aw a s t a b u l a t e d i n t h e a ss es s m e n t or de r r e pr o d u c e d he re u n d e r : S . N o . P e r s o n A l l o w a b l e L i m i t 1 . S h r i M u k e s h K u m a r ( H u s b a n d ) 1 0 0 g m s 2 . S m t . K i r t i S i n g h ( S e l f ) 5 0 0 g m s 3 . S m t . S h a k u n t a l a d e v i ( M o t h e r i n l a w ) 5 0 0 g m s 4 . S h . S a m r a t S i n g h (s o n ) 1 0 0 g m s 5 . S h . Y u v r a j S i n g ( s o n ) 1 0 0 g m s T o t a l 1 3 0 0 g m s I.T.As.977 & 1067/Del/2023 3 6. T he A s se ss i n g O f fi c er t hu s tr ea t e d Rs. 4 8, 8 6 , 06 0 /- o u t o f Rs. 9 3 , 18, 0 9 0/ - w o r th o f j ew e l le r y a s e x pl a i ne d. T h e r e m a in in g a m ou nt o f R s. 4 4, 3 2 , 030 /- w a s th us t re at e d a s u ne xpl a i ne d a s t he a ss es se e h a s f a i l e d t o f ur ni s h a n y bi l ls / v ou c h e r s or so ur c e o f pu r c h a s e o f j e w e l l e ry . T h e i n c o m e r e t u r n e d a t Rs. 8 5, 9 3 , 1 70 /- w a s t hu s a s se ss e d a t R s. 1, 30 , 25, 2 00 / -. 7. A g gri e v e d, t he a ss e ss e e p r e f e r re d a p pe a l b e f or e th e CI T( A ). Th e C I T (A ) a l s o a ffi r me d t he a c t i o n o f t h e A ss e s si ng O f fi c er a n d de c li ne d to i nt er fe re w i t h t h e a d d it i o n s c a r ri e d o ut to w a r d s un e x p l a i n e d je w e ll e ry . 8. F u rt h e r a gg ri e ve d, t h e a s se s s ee pr e fe rr ed a p pe a l b e f or e t he Tr i bu n a l . 9. W e h a v e he a r d t he ri v a l su b m i ssi on s a nd pe r u se d t he o r de r s o f t he l o w er au t h or it i e s as w e l l a s m at e r i a l a v a i l a b l e o n r e c o r d . 10 . T he a d d it i o n s on a c c ou n t o f u n e x p la i n e d j e w e l l ery be i n g 11 7 9. 1 0 g m s v a l ue d a t R s. 44, 3 2, 03 0/ - i s s u b j e c t ma tt e r o f c on t r o v e r sy . A s p oi n te d ou t o n b e ha l f o f t h e a ss e s se e, t ot al j ew e l le r y f ou n d d ur i n g t h e s ea r ch st a nd s a t 2 47 9. 10 g m s. T he A sse s si n g O ffi c e r h a s a c c ep t e d 1 30 0 g ms a s a t t ri bu ta bl e t o d i f fe r e n t fa m il y me m be rs t a bu l a t ed i n t h e e a rl i e r p ar a g ra ph s a s e xp la i n e d. H ow e ve r, t h e r e m ai n in g je w e ll e r y b ei n g 1 17 9 . 10 g m s h as be e n t re at e d a s u n e x pl a i n e d o n t he g r o u n d t ha t 5 1 4 g m s an d 2 50 . 4 0 0 g m s st a t e d t o b e r el a t a b le t o s i s t e r s -i n- l a w , i . e ., si st e r o f h u s ba n d ( M r. M uke sh K u m a r ) w as no t ac c e p t e d by t he A s se s si n g O ffi c e r. Li k ew i s e o ut o f 9 14. 7 0 g m s r e l a t ab l e t o t h e a ss e s see h a s b e e n a cc e p t e d p a rt ly t o t he e x t en t o f 5 00 g ms a s e x p la i ne d a n d r e m a in in g 41 4 . 70 g ms h a s b ee n t r ea t e d as u n e x pl a i n e d. T he ta bu l at i on s h ow s i n t hi s re ga r d is r ep r o d uc e d h e r e u n de r: I.T.As.977 & 1067/Del/2023 4 S . N o . N a m e W e i g h t o f j e w e l l e r y p e r t a i n i n g t o a s s e s s e e a n d a s s e s s e e ’ s f a m i l y m e m b e r s R e l a t i o n s h i p w i t h t h e a p p e l l a n t W e i g h t a c c e p t e d b y t h e A O ( i n g m s ) I n D i s p u t e b e f o r e t h e H o n ’ b l e T r i b u n a l ( g m s ) 1 . S h r i M u k e s h K u m a r ( s p o u s e ) 1 0 0 g m s H u s b a n d ( s p o u s e ) 1 0 0 N I L 2 . S m t . K i r t i S i n g h ( S e l f ) 9 1 4 . 7 0 g m s A p p e l l a n t 5 0 0 4 1 4 . 7 0 3 . S m t . S h a k u n t a l u d e v i 5 0 0 g m s A p p e l l a n t ’ s m o t h e r - i n - l a w 5 0 0 N I L 4 . S h . S a m r a t S i n g h ( s o n ) 1 0 0 g m s A p p e l l a n t ’ s s o n 1 0 0 N I L 5 . S h . Y u v r a j S i n g h ( s o n ) 1 0 0 g m s A p p e l l a n t’s s o n 1 0 0 N I L 6 . S m t . A n j u S i n g h 5 1 4 . 0 0 g m s A p p e l l a n t ’ s s i s t e r - i n - l a w N I L 5 1 4 . 0 0 g m s 7 . S m t . S u r e k h a S i n g h 2 5 0 . 4 0 0 g m s A p p e l l a n t’s s i s t e r - i n - l a w N I L 2 5 0 . 4 0 0 g m s T o t a l 2 4 7 9 . 1 0 g m s 1 3 0 0 g m s 1 1 7 9 . 1 0 g m s 11 . T he a ss e s se e t h us sub mi t s t h a t t he A sse ss i n g O ffi ce r ha s i gn o r e d t h e no r ma l pr ac t i c e s a n d c us t o m s o f I nd i a n S o c ie t y w h e re t he w o me n, f or v a r i e t y o f re as o n s, ha v e be e n ke e p i ng t h e i r j e w e l l e r y i n ma t e r na l ho u s e . T he si st e r s o f h us b an d o f t h e a ss e s se e h av e k ep t a pa r t o f t h e i r j e w e l l er y i n t he c us t o d y o f th e a ss e sse e fa m i ly w h i ch i s no t u nc o m mo n i n In d i an fa m i l i e s a nd t h er e f or e , t h e re w a s n o j us t i f i ca t i o n t o i g n o re t h e e x pl a na t i o n o f fe r e d a t t he th re sh o ld i n t he c ou r s e o f th e a ss es s m e nt p r o c e e d i n g s. T h e l d. c o u nse l a l so su b m it s t ha t t h e C B D T I n s t ru c t i o n N o. 1 99 4 d a t e d 1 1. 05 . 19 9 4 do es n ot b a r t he re t e n ti on o f g o l d j e w el l e r y a nd o r n a me n t s a b ov e 5 0 0 p e r l ad y. Th e a s se ss e e h a s a f fl ue nt st a t u s a nd c us t o ms a n d p ra c t i ce s o f t he c o mm u n i t y a l s o pe r mi ts f or h o ld i n g gr e a t e r qu a n t i t y o f j e w e l l er y. Th e a s se ss e e a n d h er s p o u s e h a s de c l a re d su bs t a nt ial ta xa bl e in c o me ye a r a f t er y e a r a n d t he re f or e t h e s t a tu s o f t he a s se ss e e c a nn o t be I.T.As.977 & 1067/Del/2023 5 do u bt e d a n d t hu s r e t e n t i on o f h i g h j ew e l l er y is p laus i b le an d a v al i d e xp l a na t i o n for s u c h k e e p i ng o f g ol d or na me nt s a c c um u l a t ed o v e r ye a rs a nd re c ei v e d by w ay o f g i ft s f r o m o t h e r f a m i ly m e m be r s a n d re l at i ve s a t t h e t i me o f t he i r ma r ri a g e a nd se v er a l oc c a si o n s t he re a ft er . 12 . T he CB D T I ns t ru c t i on N o. 19 94 d a te d 1 1. 0 5 . 19 9 4 is re p r o du ce d h e r e u nd er fo r i mm e di a t e r e fe r e n c e : " I n s t a n c e s o f s e i z u r e o f j e w e l l e r y o f s m a l l q u a n t i ty i n t h e c o u r s e o f o p e r a t i o n u n d e r s e c t i o n 1 3 2 h a v e c o m e t o t h e n o t i c e o f t h e B o a r d . T h e q u e s t i o n o f a c o m m o n a p p ro a c h t o s i t u a t i o n w h e r e s ea r c h p a r t i e s c o m e a c ro s s i t e m s o f j e w e l l e r y h a s b e e n e x a m i n e d b y t h e B o a r d a n d f o l l o w in g g u i d e l i n e s a r e i s s u e d f o r s t r i c t c o m p l i a n c e . ( i ) I n t h e c a s e o f a w e a l t h - t a x a s s e s s e e , g o l d j e w el l e r y a n d o rn a m e n t s f o u n d i n e x c e s s o f t h e g ro s s w e i g h t d e c l a r e d i n t h e w e a l t h - t a x r e t u r n o n l y n e e d t o b e s e i z e d . ( i i ) I n t h e c a s e o f a p e r s o n n o t a s s e s s e d t o w e a l t h- t a x g o l d j e w e l l e r y a n d o rn a m e n t s t o t h e e x t e n t o f 5 0 0 g m s . p e r m a r r i e d l a dy 2 5 0 g m s p e r u n m a r r i e d l a d y a n d 1 0 0 g m s . p e r m a l e m e m b e r o f t h e f a m i l y , n e e d n o t b e s e i z e d . ( i i i ) T h e a u t h o r i z e d o f f i c e r m a y h a v i n g r e g a r d t o th e s t a t u s o f t h e f a m i l y a n d t h e c u s t o m s a n d p r a c t i c e s o f t h e c o m m u n i t y t o wh i c h t h e f a m i l y b e l o n g s a n d o t h e r c i r c u m s t a n c e s o f t h e c a s e , d e c i d e t o e x c l u d e a l a r g e r q u a n t i t y o f j e w e l l e r y a n d o rn a m e n t s f r o m s e i z u r e . Th i s s h o u l d b e r e p o r t e d t o t h e D i r e c t o r o f I n c o m e - t a x / C o m m i s s i o n e r a u t h o r i s i n g t h e s e a r c h a l l t h e t i m e o f f u r n i s h i n g t h e s e a r c h r e p o r t. ( i v ) I n a l l c a s e s , a d e t a i l e d i n v e n t o r y o f t h e j e w el l e r y a n d o rn a m e n t s f o u n d m u s t b e p r e p a r e d t o b e u s e d f o r a s s e s sm e n t p urp o s e s . " 13 . T he ye a r -w i s e in co me r e p o r t e d b y t he as se ss e e an d he r hu s ba nd si g n i fy i n g t h e i r c ap ac i t y a nd h i g h s t a tu s is ta bu l at e d he r e u n d e r : S m t . K i r t i S i n g h ( A p p e l l a n t ) A s s e s s m e n t Y e a r I n c o m e o f t h e A p p e l l a n t ( i n R s . ) 2 0 1 2 - 1 3 1 9 , 8 4 ,0 5 6 / - 2 0 1 3-1 4 9 4 , 3 5 ,1 0 9 /- 2 0 1 4 - 1 5 5 7 , 8 3 ,6 5 9 / - 2 0 1 5 - 1 6 1 , 1 7 , 8 4 , 3 3 7 / - 2 0 1 6 - 1 7 1 , 4 8 , 9 1 , 7 6 9 / - 2 0 1 7 - 1 8 1 , 2 1 , 3 3 , 7 1 4 / - I.T.As.977 & 1067/Del/2023 6 2 0 1 8 - 1 9 2 , 2 1 , 7 0 , 9 5 4 / - 2 0 1 9 - 2 0 3 , 0 2 , 8 3 , 6 5 0 / - 2 0 2 0 - 2 1 4 , 0 2 , 3 5 , 6 0 3 / - 2 0 2 1 - 2 2 3 , 5 1 , 1 4 , 7 8 0 / - 2 0 2 2 - 2 3 2 , 7 0 , 5 8 , 4 5 5 / - 2 0 2 3-2 4 2 , 7 0 , 5 8 , 4 5 5 /- T o t a l 2 1 , 0 8 ,4 0 ,0 8 6 / - S h . M u k e s h S i n g h ( S p o u s e o f t h e A p p e l l a n t ) A s s e s s m e n t Y e a r I n c o m e o f t h e A p p e l l a n t ( i n R s . ) 2 0 1 2 - 1 3 1 7 , 6 5 ,1 9 2 / - 2 0 1 3 - 1 4 9 2 , 0 1 ,5 0 2 / - 2 0 1 4 - 1 5 5 5 , 0 5 ,1 8 6 / - 2 0 1 5 - 1 6 1 , 1 1 , 8 8 , 4 1 2 / - 2 0 1 6 - 1 7 1 , 4 7 , 8 0 , 6 9 0 / - 2 0 1 7 - 1 8 1 , 0 7 , 5 5 , 2 7 8 / - 2 0 1 8 - 1 9 2 , 0 3 , 6 8 , 7 7 7 / - 2 0 1 9 - 2 0 2 , 6 2 , 1 6 , 2 6 6 / - 2 0 2 0 - 2 1 3 , 5 5 , 3 3 , 7 8 5 / - 2 0 2 1 - 2 2 2 , 9 4 , 1 6 , 5 6 9 / - 2 0 2 2-2 3 1 , 7 9 , 8 9 , 3 1 3 /- 2 0 2 3 - 2 4 1 , 8 0 , 8 2 , 6 1 3 / - T o t a l 1 8 , 2 7 ,2 0 ,9 7 0 / - 14 . W e o bs e r ve t h a t t h e i n c o me re p o rt e d a s t a bul a t ed a b o ve c le a r l y sh o w s t ha t t h e a ss e s se e a n d he r fa m il y m e m be r s a r e hi gh n e t w or th i nd iv id ua l s a nd h a v i n g r eg ar d to t h e i r h i g h st at us, h o l d i n g suc h j ew e l l er y fo u nd i n t h e c u st o d y o f m e mb e r s o f th e i r fa m i l i e s c an no t b e s e e n t o b e ab no r ma l a nd c o n se qu e n t l y u ne xp l a i n e d. S i mu l t a ne ou sl y , w e t a k e n ot e o f pa r a g r a p h 3 o f t he CB D T i ns t r u c t i on, w he r e t he st at us o f t h e fa mi l y a n d c ust o m s a n d p r ac t i ce s o f t he c o mm u n i t y t o w hi c h fa mi l y b e l o ng s, p er mi t an a ss e s se e t o ho l d l a r g e r q ua nt i t y o f j e w e l l er y a n d or n a me n t s o ut o f t he p ur v ie w o f s e iz ur e . A s pe r th e i n s t r uc t i o n, t h e I nc o m e Ta x D ep a r t me nt a l s o re c og n i z e s h o l d i n g o f s u c h h i g h q ua n t i t y o f j ew e l l er y a s e xp l a i n e d w he re t h e a ss e s se e i s i n t h e h i g h i nc o m e t a x b ra c kets . T he a ss e s se e ha s t hu s s u f fi c i e nt l y d e m o n s t ra te d th e pl au si bi l i t y f or h o ld i n g g ol d or n a me n t s i n e x c e s s o f t h e l i m i t p r e s c r i be d b y t h e C BD T i n st r u c t io n. We a l s o fi nd me r i t i n t h e ex pl a na ti o n o f fe r e d b y t he a ss e ss e e th at I.T.As.977 & 1067/Del/2023 7 c re di t sh o u l d be g iv e n f o r go ld , j e w el l e r y an d o rn am e nt s h el d i n c us t o dy o f t h e a s s es s ee o n b e h a l f o f t h e s i s t e r- i n -l aw , S mt . A nj u S i ng h a n d S m t . S ur ek ha S i n g h. K e ep i ng i n mi n d, t he o v e ra ll s t a t us o f t h e f a m i l y a s d e m o n s tr a bl e f ro m t h e fa c t s o f re co rd s, w hol e o f t he go l d o r na m e n ts fo u nd a t t h e t i m e o f s e a r c h re qu ir e s t o b e t r ea t e d a s c le a r l y e x p l a i ne d. 15 . A t t h i s j u nc tu re , w e re fe r t o t he o bse rv a t i o ns ma de b y t h e H on’ bl e D e l h i H i g h C ou r t i n t he c a s e o f As h o k C ha d d ha v s. IT O (2 0 11 ) 14 t ax m an n . co m 5 7 (D e l) w h e r ei n c ol l e c t i n g j ew e l l e r y a b o ve t he l i mi t p r e s cr ib e d i n th e i ns t r u c t i on , i n a m a r rie d li f e o f 2 5 t o 3 0 ye a rs, w as no t t r e a te d a s a bn or ma l . T he no r ma l c u sto m o f I n di a n soc i e t y a n d re al i t i e s o f li f e w e r e t a k e n i nt o a c c oun t b y t he H o n’ b l e Jur is d i ct i o na l H i gh C o ur t. T he re l ev a n t p or ti o n o f t h e j ud g m en t i s re p r o du ce d h e r e u nd er fo r re a dy r e fe re n c e. “ A s f a r a s a d d i t i o n q u a j e w e l l e r y i s c o n c e r n e d , d u ri n g t h e c o u r s e o f s e a r c h , j e w e l l e r y w e i g h i n g 9 0 6 .9 0 0 g r a m s o f t h e v a lu e a m o u n t i n g t o R s . 6 , 9 3 ,5 8 2 w a s f o u n d . T h e a p p e l l a n t ' s e x p l a n a t i o n w a s t h a t h e w a s m a r r i e d a b o u t 2 5 y e a r s b a c k a n d t h e j e w e l l e r y c o m p r i s e d " s tr e e d h a n " o f S m t . J y o t i C h a d h a , h i s w i f e a n d o t h e r s m a l l i t e m s j e w e l le r y s u b s e q u e n t l y p u r c h a s e d a n d a c c u m u l a t e d o v e r t h e y e a r s . H o w e v e r , t h e As s e s s i n g O f f i c e r d i d n o t a c c e p t t h e a b o v e e x p l a n a t i o n o n t h e g r o u n d t h a t d o c u m e n t a r y e v i d e n c e r e g a r d i n g f a m i l y s t a t u s a n d t he i r f i n a n c i a l p o s i t i o n w a s n o t f u r n i s h e d b y t h e a p p e l l a n t T h e A s se s s i n g O f f i c e r a c c e p t e d 4 0 0 g ra m s o f j e w e l l e r y a s e x p l a i n e d a n d t re a t e d j e w e l l e r y a m o u n t i n g t o 5 0 6 .9 0 0 g ra m s a s u n e x p l a i n e d a n d m a d e a n a d h o c a d d i t i o n o f R s . 3 , 8 7 , 3 6 4 u n d e r s e c t i o n 6 9 4 o f t h e A c t w o r k i ng o n u n e x p l a i n e d j e w e l l e r y , b y a p p l y i n g a v e ra g e ra t e o f t h e t o t a l j ew e l l e r y f o u n d . T h e r e l e v a n t p o r t i o n o f t h e a s s e s s m e n t o r d e r r e a d s a s fo l l o w s : - " v e r y r e a s o n a b l e a l l o w a n c e o f o w n e r s h i p o f g o l d j ew e l l e r y t o t h e e x t e n t o f 4 0 0 g r a m s i s c o n s i d e r e d r e a s o n a b l e a n d t h e b a l a nc e q u a n t i t y o f 5 0 6 g ra m s b y a p p l y i n g a v e r a g e r a t e , t h e u n e x p l a i n e d g o ld j e w e l l e r y i s c o n s i d e r e d a t R s . 3 , 8 7 , 3 6 4 ( 5 0 6 / 9 0 0 × 6 , 9 3 ,5 8 2 ) u / s 6 9 A o f t h e A c t . " T h e C I T ( A ) c o n f i r m e d t h i s a d d i t i o n s t a t i n g t h a t t he A s s e s s i n g O f f i c e r h a d b e e n f a i r i n a c c e p t i n g t h e p a r t o f j e w e l l e r y a s u n e x p l a i n e d . T h e I T A T h a s a l s o e n d o r s e d t h e a f o r e s a i d v i e w . L e a rn e d c o u n se l f o r a p p e l l a n t M s . K a p i l a s u b m i t t e d t h a t t h e r e w a s n o b a s i s f o r t h e A ss e s s i n g O f f i c e r t o a c c e p t t h e o w n e r sh i p o f t h e g o l d j e w e l l e r y t o t h e ex t e n t o f 4 0 0 g ra m s o n l y a s " r e a s o n a b l e a l l o w a n c e " a n d t r e a t t h e r e m a i ni n g j e w e l l e r y o f R s . 5 0 6 . 9 0 0 a s u n e x p l a i n e d . S h e a l s o s u b m i t t e d t h a t a n ot h e r g l a r i n g f a c t I.T.As.977 & 1067/Del/2023 8 i g n o r e d b y th e A s s e s s i n g O f f i c e r a s w e l l a s o t h e r au t h o r i t i e s w a s t h a t a s t h e d e p a r t m e n t h a d c o n d u c t e d a s e a r c h o f a l l t h e f in a n c i a l d e a l i n g s w h i c h w e r e w i t h i n h i s k n o w l e d g e a n d n o p a p e r o r d o cu m e n t w a s f o u n d t o i n d i c a t e t h a t t h i s j e w e l l e r y b e l o n g e d t o t h e a p p e l la n t a n d t h a t i t w a s u n d i s c l o s e d i n c o m e o f t h e a s s e s s m e n t y e a r 2 0 0 6 -0 7 . I n a s e a r c h o p e r a t i o n , n o s c o p e i s l e f t w i t h t h e t a x d e p a r t m e n t t o m a k e a d d i t i o n o n s u b j e c t i v e g u e s s w o r k , c o n j e c t u r e s a n d s u r m i s e s . I t w a s a l s o a r g u e d t h a t j e w e l l e r y i s " s t r e e d h a n " o f t h e a s s e s s e e ' s w i f e , e vi d e n c e d i n t h e f o r m o f d e c l a ra t i o n w h i c h w a s f u r n i s h e d b y m o t h e r - i n - l a w o f t h e a s s e s s e e s t a t i n g t h a t s h e h a d g i v e n t h e j e w e l l e r y i n q u e s t i o n t o h e r d a u g h t e r : S h e a rg u e d t h a t i t i s a n o r m a l c u s t o m f o r a w o m a n t o r e c e i v e je w e l l e r y i n t h e f o r m o f m a r r i a g e a n d o t h e r o c c a s i o n s su c h a s b i r t h o f a c h il d . T h e a s s e ss e e h a d b e e n m a r r i e d m o r e t h a n 2 5 -3 0 y e a r s a n d a c q u i s i t i o n o f t h e j e w e l l e r y o f 9 0 6 . 9 0 0 g r a m s c o u l d n o t b e t r e a t e d a s e x c e s si v e . 3 . L e a r n e d C o u n s e l f o r t h e r e s p o n d e n t o n t h e o t h e r h a n d r e l i e d u p o n t h e r e a s o n i n g g i v e n b y t h e a u t h o r i t i e s b e l o w . A f t e r c o ns i d e r i n g t h e a f o r e sa id s u b m i s s i o n s w e a r e o f t h e v i e w t h a t a d d i t i o n m a d e is t o t a l l y a r b i t r a r y a n d i s n o t f o u n d e d o n a n y c o g e n t b a s i s o r e v i d e n c e . W e h a v e t o k e e p in m i n d t h a t t h e a s s e s se e w a s m a r r i e d f o r m o r e t h a n 2 5- 3 0 y e a r s . T h e j e w e l l e r y i n q u e s t i o n i s n o t v e r y s u b s t a n t i a l . ' T h e l e a r n e d c o u n s e l f o r t h e a p p e l l a n t / a s s e s s e e i s c o r r e c t i n h e r s u b m i s s i o n t h at i t i s a n o r m a l c u s t o m f o r w o m a n t o r e c e i v e j e w e l l e r y i n t h e f o r m o f " s t r ee d h a n " o r o n o t h e r o c c a s i o n s su c h a s b i r t h o f a c h i l d e t c . C o l l e c t i n g j e w e l l e r y o f 9 0 6 . 9 0 0 g ra m s b y a w o m a n in a m a r r i e d l i f e o f 2 5 - 3 0 y e a r s is n o t a b n o r m a l . F u r t h e r m o r e , t h e r e w a s n o v a l i d a n d o r p r o p e r y a r d st i c k a d o p t e d b y t h e A s s e s s i n g O f f i c e r t o t r e a t o n l y 4 0 0 g ra m s a s r e a s o na b l e a l l o w a n c e " a n d t r e a t t h e o t h e r a s " u n e x p l a i n e d " . M a t t e r w o u l d h a v e b e e n d i f f e r e n t i f t h e q u a n t u m a n d v a l u e o f t h e j e w e l l e r y f o u n d w a s s u b s t an t i a l . 4 . W e a r e , t h e r e f o r e , o f t h e o p i n i o n t h a t t h e f i n d in g s o f t h e T r i b u n a l a r e t o t a l l y p e r v e r s e a n d f a r f r o m t h e r e a l i t i e s o f l i f e. I n t h e p e c u l i a r f a c t s o f t h i s c a s e w e a n s w e r t h e q u e s t i o n i n f a v o u r o f t h e as s e s s e e a n d a g a i n s t t h e r e v e n u e t h e r e b y d e l e t i n g t h e a f o r e s a i d a d d i t i o n o f R s . 3 , 8 7 , 3 6 4 . ” 16 . A r e fe re nc e is a l s o ma de t o t h e j u d g me n t r e n d e re d b y t he H on’ bl e Su p r e m e C o ur t i n t he c a se o f P r at i b h a R a ni v s. S ur aj Kum a r (1 98 5 ) (2 ) SC C 7 0 w he r e i t w a s he l d t ha t a H i nd u ma r r i e d w o ma n i s ab so l u t e o w ne r o f h e r S t r e e d ha n p r o p er ty and c a n de a l w it h i t i n an y m a n ne r s he l i ke s a n d e ve n i f i t p la ce d i n t he c ust od y o f h e r i n la w s or h e r p a r e n t s a s p e r h e r w i s h. T h e H on ’ b l e S up re me Co u rt t h u s d ul y t o ok c o g n iz a n c e o f t he o r di na r y c ust o m s pre va i l in g i n I n d i a n so c i e t y w he r e m ar r i e d w o m a n ke e p s he r g o ld j e w e l le r y a n d or n a me n t s i n he r p a re n t s ’ c u st o d y. 17 . I n s i m il a r se t o f c i r c u m s ta nc e s p l e t hor a o f j u dg m e n t s ha v e I.T.As.977 & 1067/Del/2023 9 be e n de l i v e r e d i n fa vo ur o f t he a ss e s s e e b y t h e Co -o rd i n a te B e nc he s. A re fe r e n c e ma y b e ma de to t h e d e c i si o n s r e n de re d in t h e c a se o f An k ur S h a rm a v s. D C IT , IT A N o . 18 4 3/ D e l/ 20 22 As se s sme nt Y e a r 20 1 9- 20 o rd e r da t e d 06 . 1 0. 2 0 23 ; G ag an S a ra n S h a rm a v s. D C IT , IT A N o. 18 44 / D e l / 2 0 2 2 o rd er d a t e d 06 . 1 0. 20 2 3 an d A n ki t Sh a rm a & ors. v s. D C IT , IT A N o. 18 42 /D e l /2 02 2 ord e r d a t e d 1 6.10 . 2 02 3. I n t he se gro up o f c a s e s, t ot a l j e w e l l e ry fo u nd du ri ng t h e s e ar ch u n d e r S ec t i on 13 2 s t o od at 3 8 7. 5 0 g m s, t he re v e n u e pr o v i de d r el i e f i s t o t he e xt e n t o f 2 25 0 g ms. Th e e x c e ss i v e j ew e l l e r y o f 1 6 2 7. 50 g m s fo u nd i n t he co ur se o f s ea rc h w a s t r ea t e d as e xp l a ine d by t he Tr i bu n a l i n t h e b a c kd r op o f hi gh i nc o m e d ec l ar e d b y t h e a sse ss e e i n t he d i f fe r e n t a ss e s s m e n t ye a r s. Th e fa c ts t ow a r ds hi gh s t a t u s e t c . i n t he p r e se nt ca se a r e f ou n d t o b e b e t t er t h a n i n th e d e c i si o n s r e n d e re d by t h e C o- o r d i n at e B e n c h e s i n A n k i t S ha rm a ( su p r a) , A nk ur Sh a rm a (su pr a) a n d G ag an S h ar m a (s u p ra ). 18 . A re fe r e n c e i s a l s o ma d e t o t h e d e c i si o n o f t he Co - o r d i n a t e Be nc h i n Mo ni sh a R . Ja i s i n g v s . D CI T , (20 1 9 ) 1 01 ta xm a nn. c om 5 1 9 (M u m – T ri b. ) a nd V i b h u Ag ga r wa l v s. D CIT , (20 18 ) 9 3 t ax m a nn . c o m 27 5 (D e l . T ri b. ) w he re ke e p i n g i n m i n d t he h i g h i nc o m e re p or t e d b y t he re sp e c t iv e a ss e ss e e a n d ha v in g r e ga rd t o w ea l t hy f a m i l y st a t us w h er e g i f t i n g o f je w e ll e r y i s c us t o m a r y , t he e xp l a na t i o n o f fe re d b y t he a s se s s e e t ow a r d s h ol di n g go ld a n d or n a me n t s i n e xc e s s o f C BD T i n s tr uc t i o n w a s tr e at e d a s e x pl a i n e d . 19 . I n th e l i gh t o f t h e d el i n e a ti o n s ma de ab o ve , w e s e e po te nc y i n t he pl e a ra i s e d o n b e h a l f o f t h e as se s se e . T he a d d it i on s m a d e un de r S ec t i on 6 9A t ow a r d s go l d or n a m e nt s a re a t o d ds w i t h t h e de c i si o n re n d e r e d b y t h e J ur i sd i c t i o n a l H i gh C o ur t i n A sh o k C h h ad ha ( s up ra ) a nd de c i si o n s re nd e r e d by Co -o rd i n a t e B e n c h e s r e fe rre d h er e i n ab ov e a nd t he re fo r e c an no t b e c ou n t e n a n ce d. W e t h u s s et as i d e t h e o r de r o f I.T.As.977 & 1067/Del/2023 10 t he C I T ( A ) a n d di r e c t t he A sse ss i n g O f fi c er t o d e l et e t h e ad di t i o n s ma de un de r S e c ti o n 69 A o f t he A c t o n t hi s sc o r e . 20 . I n t h e r e s ul t , t he a p pe a l o f t he a s se sse e in ITA N o. 10 6 7/ D e l /2 02 3 i s a l l ow e d. 21 . I n t he c o m bi ne d r e su lt , t h e a p p e a l o f t he a ss esse e i n IT A N o. 97 7/ D e l/ 20 23 i s d i s m i s se d a s w i t hd ra w n an d a pp e al i n I T A N o. 10 6 7/ D e l /2 02 3 i s a l l ow e d. Order pronounced in the open Court on 07/12/2023. Sd/- Sd/- [YOGESH KUMAR US] [PRADIP KUMAR KEDIA] JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: /11/2023 Prabhat