Sarwan Kumar Goyal, Mandi Gobindgarh V. ACIT, Patiala

ITA 1286/CHANDI/2016

• Counselvise Citation: [2018] 121 COUNSELVISE.COM (IT) 5008 (ITAT-CHANDIGARH)
• Duration Of Justice: 1 year(s) 5 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-05-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: Not Allotted
• Assessment Year: 2012-2013
• Appeal Filed On: 05-12-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RENU AMITABH
• Assessee Lawyers: ASHWANI KUMAR SH ADITYA KUMAR
• Keywords: Unexplained investment; Gift
• Section: 153A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH B, CHANDIGARH BEFORE SHRI SANJAY GARG, JUDICIAL MEMBER AND MS.ANNAPURNA GUPTA, ACCOUNTANT MEMBER ITA NO.1286/CHD/2016 ASSESSMENT YEAR: 2012-13 SARWAN KUMAR GOYAL VS. THE ACIT, 353 SECTOR-5, BLOCK B CENTRAL CIRCLE GOYAL COLONY, PATIALA MANDI GOBINDGARH PAN NO. ACAPG9907E (APPELLANT) (RESPONDENT) ASSESSEE BY : SH. ASHWANI KUMAR SH. ADITYA KUMAR REVENUE BY : SMT. RENU AMITABH DATE OF HEARING : 28/05/2018 DATE OF PRONOUNCEMENT : 28/05/2018 ORDER PER SANJAY GARG, JUDICIAL MEMBER: THE PRESENT APPEAL HAS BEEN PREFERRED BY THE ASSESS EE AGAINST THE ORDER DATED 16/09/2016 OF THE COMMISSIONER OF INCOME TAX (APPEALS)-5, LUDHIANA [HEREINAFTER REFERRED TO AS CIT(A)]. 2. THE ASSESSEE HAS RAISED FOLLOWING GROUNDS OF A PPEAL: 1. THAT THE ORDER PASSED BY THE LD. CIT(A) IS AGAINST FACTS OF THE CASE AND IS BAD IN LAW. 2. THAT ON THE FACTS & CIRCUMSTANCES OF THE CASE, THE LD. CIT(A) HAS ERRED IN NOT ACCEPTING THE CONTENTION OF THE APPELLANT IN RE LATION TO POSSESSION OF JEWELLERY & SILVER WARES AS PER THE CUSTOMS & STATU S OF THE ASSESSEE AND HIS FAMILY. 3. THAT ON THE FACTS & CIRCUMSTANCES OF THE CASE, THE LD. CIT(A) HAS ERRED IN CONFIRMING THE ADDITION OF RS. 9,45,538/- ON ACCOUN T OF UNEXPLAINED INVESTMENT IN JEWELLERY & SILVER WARES. 3. BRIEF FACTS RELATING TO THE ISSUE ARE THAT A SEA RCH ACTION UNDER SECTION 132(4) WAS CARRIED OUT AT THE PREMISES OF THE ASSE SSEE. DURING THE COURSE OF SEARCH, JEWELLERY TO THE EXTENT OF RS. 1,27,97,118/ - WAS FOUND IN ADDITION TO SILVER 2 UTENSILS VALUED AT RS. 11,08,920/-. IN HIS RETURN O F INCOME FILED UNDER SECTION 153A OF THE ACT, THE ASSESSEE DECLARED THE JEWELLERY OF RS. 1.10 CRORES. 4. THE AO AFTER EXEMPTING 700 GMS. OF JEWELLERY WHI CH AS PER THE BOARD CIRCULAR WAS SUPPOSED TO BE REASONABLY POSSESSED BY THE FAMILY OF THE ASSESSEE I.E; 500 GMS OWNED BY THE MARRIED LADY I.E; WIFE OF ASSESSEE AND 100 GMS OF ADULT MALE MEMBER(ASSESSEE) AND 100 GMS FOR MALE CH ILD(SON), MADE THE ADDITION IN RESPECT OF THE REMAINING DIFFERENCE IN THE VALUE OF JEWELLERY I.E; OF RS. 9,45,538/- WHICH HAS BEEN CONFIRMED BY THE CIT(A). 5. BEFORE US THE LD. AR OF THE ASSESSEE SUBMITTED T HAT CERTAIN JEWELLERY WAS FOUND IN THE LOCKER WHICH WAS SEALED ON THE DATE OF SEARCH AND THAT THERE WAS A DIFFERENCE OF RATE OF JEWELLERY AS ON THE DATE OF SEARCH AND AS ON THE DATE OF RECOVERY OF JEWELLERY FROM THE SEALED LOCKER. THE A O APPLIED THE RATE TO THE JEWELLERY FOUND IN THE LOCKER AS WAS ON THE DATE OF OPENING OF THE LOCKER. THE CASE OF THE ASSESSEE IS THAT THE LOCKER WAS SEALED ON THE DATE OF SEARCH AND THE RATE APPLICABLE TO THE JEWELLERY SHOULD BE THAT AS WAS ON THE DATE OF SEARCH. IF THE RATE AS ON THE DATE OF SEARCH IS APPLIED AND TH E DIFFERENCE IN THE VALUE OF THE JEWELLERY WOULD COME TO RS. 2,41,008/-. THE LD. COUNSEL FOR THE ASSESSEE HAS GIVEN THE DATE WISE RATE IN HIS SUBMISSION GIVEN VI DE LETTER DT. 15/06/2016. LD. COUNSEL FOR THE ASSESSEE HAS FURTHER SUBMITTED THAT ASSESSEE FAMILY IS A REPUTED FAMILY HAVING GOOD RESOURCES. UNDER THESE CIRCUMSTA NCES THE ASSESSEE FAMILY WAS SUPPOSED TO POSSESS SOME JEWELLERY MORE THAN T HE PRESCRIBED LIMIT AND THAT THE REASONABLE POSSESSION OF THE JEWELLERY BY THE MEMBER OF THE ASSESSEE FAMILY SHOULD NOT BE LIMITED TO THE EXTENT OF BOARD CIRCULAR ONLY. LD. COUNSEL FOR THE ASSESSEE INVITED OUR ATTENTION TO PAPER BOOK PA GE NO. 9 TO SHOW THAT THE CERTAIN JEWELLERY WAS SEIZED FROM THE ASSESSEE BY T HE INCOME TAX AUTHORITIES EARLIER ALSO ON 04/04/1991 WHICH SHOWS THAT EARLIER ALSO THE ASSESSEES FAMILY WAS POSSESSED OF CERTAIN JEWELLERY WHICH WAS MORE THAN THAT WAS SUPPOSED TO BE IN POSSESSION OF THE FAMILY IN THE NORMAL COURSE OR AS PER PRESCRIBED LIMIT IF ANY. 6. LD. COUNSEL FOR THE ASSESSEE THEREFORE HAS SUBMI TTED THAT THE SON OF THE ASSESSEE WAS POSSESSING 103.155 GMS OF JEWELLERY WH EREAS THE ASSESSEE HIMSELF WAS POSSESSED OF 135.375 GMS AND HIS WIFE WAS POSSE SSED OF 748.320 GMS OF GOLD JEWELLERY. LD. COUNSEL THEREFORE HAS STATED THAT TH E ASSESSEE HAS REASONABLY TAKEN INTO CONSIDERATION THE ACTUAL POSSESSION OF T HE JEWELLERY BY THE MEMBER OF THE FAMILY OWING TO THE FAMILY STATUS OF THE FAM ILY. LD. COUNSEL FOR THE ASSESSEE 3 HAS SUBMITTED THAT IF THE ABOVE JEWELLERY IS CONSID ERED TO BE REASONABLY POSSESSED OF BY THE FAMILY MEMBER OF THE ASSESSEE, NO ADDITION IS WARRANTED. 7. THE LD. DR ON THE OTHER HAND RELIED ON THE ORDER OF THE LOWER AUTHORITIES. 8. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. 9. WE FIND THAT THE ASSESSEE HAS SURRENDERED EXCESS JEWELLERY OF RS. 1.10 CRORES. THE ASSESSEE IN OUR VIEW HAS REASONABLY SHO WN THE JEWELLERY ACQUIRED ON ACCOUNT OF PURCHASES / GIFTS RECEIVED ON CERTAIN OC CASIONS LIKE MARRIAGE, BIRTHDAYS ETC. THE JEWELLERY OF 103.155 GMS FOR THE SON OF THE ASSESSEE, 135.375 FOR THE ASSESSEE AND 748.320 GMS FOR THE WIFE OF TH E ASSESSEE IN OUR VIEW IS NOT UNREASONABLE AND CAN BE SAID TO HAVE BEEN ACTUALLY POSSESSED BY THE ASSESSEE UNDER THE FACTS AND CIRCUMSTANCES OF THE C ASE. 10. CONSIDERING THE OVERALL FACTS AND CIRCUMSTANCES OF THE CASE, IN OUR VIEW, AN AMOUNT OF RS. 1.10 CRORES SURRENDERED BY THE ASS ESSEE SEEMS TO BE QUITE REASONABLE AND GENUINE AND NO FURTHER ADDITION ON A CCOUNT OF JEWELLERY IS WARRANTED IN THIS CASE. HENCE FURTHER ADDITION ON A CCOUNT OF ASSESSED JEWELLERY IS DELETED. 11. IN THE RESULT APPEAL OF THE ASSESSEE IS ALLOWED . ORDER PRONOUNCED IN THE OPEN COURT. SD/- SD/- (ANNAPURNA GUPTA) (SANJAY GARG) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 28/05/2018 AG COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT(A) 4. THE CIT 5. THE DR