BRIJESH D. SHAH, MUMBAI V. ACIT CEN CIR 11, MUMBAI

ITA 1421/MUM/2010

• Counselvise Citation: [2015] 134 COUNSELVISE.COM (IT) 1763 (ITAT-MUMBAI)
• Duration Of Justice: 5 year(s) 10 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-12-2015
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: J
• Next Hearing Date: 03-09-2015
• Assessment Year: 2007-2008
• Appeal Filed On: 22-02-2010
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: K RAVI RAMCHANDARAN
• Keywords: Search and seizure; Loose papers
• Section: 132

Judgement Text

, , , IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES, J MUMBAI , . , , BEFORE SHRI JOGINDER SINGH, JUDICIAL MEMBER, AND SHRI D. KARUNAKAR RAO, ACCOUNTANT MEMBER ITA NO.1421/MUM/2010 ASSESSMENT YEAR: 2007-08 SHRI BRIJESH D. SHAH, A-602, EKTA MILAN, DEVKI NAGAR, EKSAR VILLAGE, BORIWALI(W), MUMBAI / VS. ACIT, CENTRAL CIRCLE-11, AAYAKAR BHAVAN, M.K.ROAD, MUMBAI-400020 ( !'#$% /ASSESSEE) ( / REVENUE) PAN NO.AAJPS5346J & !' ( %) / DATE OF HEARING : 30/12/2015 ( %) / DATE OF ORDER: 01/01/2016 !'#$% !' / ASSESSEE BY SHRI SHASHI TULSIYAN !' / REVENUE BY SHRI K.RAVI RAMCHANDARAN- DR ITA NO.1421/MUM/2010 BRIJESH D SHAH 2 / O R D E R PER JOGINDER SINGH(JUDICIAL MEMBER) THIS APPEAL IS BY THE ASSESSEE CHALLENGING THE IMPUGNED ORDER DATED 22/01/2010 PASSED BY THE LD. F IRST APPELLATE AUTHORITY, MUMBAI. ONLY GROUND RAISED IN THIS APPEAL PERTAINS TO UPHOLDING THE ADDITION OF RS.7,3 6,000/- ON ACCOUNT OF 950 GMS. OF UNEXPLAINED JEWELLERY, FO UND DURING SEARCH. 2. DURING HEARING, THE LD. COUNSEL FOR THE ASSESSE E, SHRI SHASHI TULSIYAN, INVITED OUR ATTENTION TO INST RUCTION NUMBER 1916 (F. NO.286/63/93-IT(INV. II) DATED 11/05/1994 BY CLAIMING THAT ADDITION HAS BEEN WRONG LY MADE BY THE REVENUE BY PLACING RELIANCE UPON THE DE CISION IN THE CASE OF SHRI AJAY DOSHI VS ACIT (ITA NO.106/MUM/2010) FOR A.Y. 2007-08, ORDER DATED 23/12/2011. ON THE OTHER HAND, THE LD. SR. DR, SHR I K. RAVI RAMACHANDRAN, CONTENDED THAT THE ASSESSEE HAS ALREADY GIVEN THE BENEFIT OF 181.500 GMS, THEREFORE , TO THIS EXTENT THE ADDITION MAY BE SUSTAINED. 2.1. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. THE FACTS , IN BRIEF, ARE THAT SEARCH AND SEIZURE ACTION U/S 132 (1) OF T HE INCOME TAX ACT, 1961 (HEREINAFTER THE ACT) WAS CARRIED OUT AT THE RESIDENTIAL PREMISES/BANK LOCKER OF THE ASSESSEE, W HEREIN, GOLD JEWELLERY AND LOOSE PAPERS WERE FOUND AND SEIZ ED. THE ITA NO.1421/MUM/2010 BRIJESH D SHAH 3 ASSESSEE WAS ASKED TO EXPLAIN THE MODE AND SOURCE O F THE POSSESSION OF THE SEIZED GOODS. THE GOLD JEWELLERY WEIGHING 1809. 200 GMS WAS FOUND. AS PER THE REVENUE, 950 GM S. OF JEWELLERY WAS FOUND EXCESSIVE. THE WORKING OF THE J EWELLERY IS REPRODUCED HEREUNDER:- PARTICULARS GRAMS GOLD JEWELLERY AT RESIDENCE 1699.200 JEWELLERY ON PERSON 110.000 1809.200 LESS: PRATIKSHA B SHAH. WIFE 500 KHUSI BRIJESH SHAHDAUGHTER 250 BRIJESH SHAH..SELF 100 DALPATRAI F SHAH.FATHER- 100 950 859.200 PURCHASES A.Y. 2005-06 83.050 A.Y. 2006-07 98.450 181.500 EXCESS GOLD JEWELLERY IN GMS 678 THE LD. ASSESSING OFFICER MADE ADDITION OF 950 GMS AS UNEXPLAINED JEWELLERY AT THE RATE OF RS.775 PER GRA MS RESULTING INTO ADDITION OF RS.7,36,250/-. ON APPEAL , THE LD. COMMISSIONER OF INCOME TAX (APPEALS) CONFIRMED THE SAME. THE ASSESSEE IS IN FURTHER APPEAL BEFORE THIS TRIBU NAL. 2.2. IF THE OBSERVATION MADE IN THE ASSESSMENT ORD ER, LEADING TO ADDITION MADE TO THE TOTAL INCOME, CONCL USION DRAWN IN THE IMPUGNED ORDER, MATERIAL AVAILABLE ON RECORD, ASSERTIONS MADE BY THE LD. RESPECTIVE COUNSEL, IF K EPT IN JUXTAPOSITION AND ANALYZED, ON PERUSAL OF RECORD AN D CONSIDERATION OF INSTRUCTION NUMBER 1916 (F. NO.286 /63/ 93-IT(INV. II) DATED 11/05/1994, THE JEWELLERY/ORNA MENTS TO ITA NO.1421/MUM/2010 BRIJESH D SHAH 4 THE EXTENT OF 500 GMS, PER MARRIED LADY, 250 GMS PE R UNMARRIED LADY AND 100 GMS., PER MALE MEMBER OF THE FAMILY, NEED NOT TO BE SEIZED, THUS, IF THE BENEFIT OF THE AFORESAID IS GRANTED TO THE ASSESSEE, ONLY 181 GMS. OF JEWELLERY REMAINED UNEXPLAINED, THUS, THE ADDITION IS CONFIRMED ONLY TO THIS EXTENT. THE LD. ASSESSING OF FICER IS DIRECTED ACCORDINGLY. FINALLY, THE APPEAL OF THE ASSESSEE IS PARTLY ALLOW ED. THIS ORDER WAS PRONOUNCED IN THE OPEN COURT IN THE PRESENCE OF THE LD. REPRESENTATIVE FROM BOTH SIDES AT THE CONCLUSION OF THE HEARING ON 30/12/2015. SD/- SD/- ( D. KARUNAKAR RAO ) (JOGINDER SINGH) #'$ / ACCOUNTANT MEMBER %'$ /JUDICIAL MEMBER & ' MUMBAI; +! DATED : 01/01/2016 F{X~{T? P.S/. !. . &%'()*)+' / COPY OF THE ORDER FORWARDED TO : 1. ,-./ / THE APPELLANT (RESPECTIVE ASSESSEE) 2. 01 ./ / THE RESPONDENT. 3. 22 & 3% ( ,- ) / THE CIT, MUMBAI. 4. 22 & 3% / CIT(A)- , MUMBAI, 5. 560%!' , 2,-),' , & / DR, ITAT, MUMBAI 6. #7 / GUARD FILE. / BY ORDER, 15-%0% //TRUE COPY// / (DY./ASSTT. REGISTRAR) , & / ITAT, MUMBAI, ITA NO.1421/MUM/2010 BRIJESH D SHAH 5