Neha Samyak Lodha, Malegaon V. ITO, Nashik

ITA 1642/PUN/2012

• Counselvise Citation: [2014] 120 COUNSELVISE.COM (IT) 6748 (ITAT-PUNE)
• Duration Of Justice: 1 year(s) 10 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-06-2014
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 12-08-2014
• Assessment Year: 2010-2011
• Appeal Filed On: 03-08-2012
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: S P WALIMBE
• Keywords: Gift

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH B, PUNE BEFORE SHRI G.S. PANNU, ACCOUNTANT MEMBER AND SHRI R.S. PADVEKAR, JUDICIAL MEMBER ITA NO.1642/PN/2012 (ASST. YEAR: 2010-11) NEHA SAMYAK LODHA LODHA BHAVAN, MAHAVIR NAGAR MARG, NEAR GOVT. HOSPITAL, SATANA ROAD, MALEGAON. PAN: AODPS2223Q APPELLANT VS. ITO, (CENTRAL)-1, NASHIK RESPONDENT APPELLANT BY : SHRI PRAMOD SHINGTE RESPONDENT BY : SHRI S.P. WALIMBE DATE OF HEARING : 03-06-2014 DATE OF PRONOUNCEMENT : 23-06-2014 ORDER PER R.S. PADVEKAR, JM: IN THIS APPEAL, THE ASSESSEE HAS CHALLENGED THE IM PUGNED ORDER OF THE LD CIT(A)-I, NASHIK, DATED 11.07.2012 FOR THE A .Y. 2010-11. THE ASSESSEE HAS TAKEN THE FOLLOWING GROUND. 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE A ND AS PER LAW, THE COMMISSIONER OF INCOME TAX, (APPEALS)-I, N ASHIK IS NOT JUSTIFIED IN CONFIRMING ADDITION MADE BY THE AO OF 100 GMS. I.E. RS.1,47,000/- ON ACCOUNT OF INVESTMENT IN JEWELLERY. 2. THE ASSESSEE IS AN INDIVIDUAL AND DERIVES INCOME FROM INTEREST FROM THE FIRM AND OTHER SOURCES. THERE WAS A SEARC H AND SEIZURE ACTION U/S.132(1) OF THE ACT BY THE DEPARTMENT ON 21-05-20 09 AT THE RESIDENTIAL PREMISES OF SHRI BHAGCHAND LODHA IN MAL GAON WHO IS FATHER- IN-LAW OF THE ASSESSEE. DURING THE COURSE OF SEARC H AGAINST SHRI 2 BHAGCHAND LODHA, JEWELLERY CLAIMED TO BE BELONGING TO THE ASSESSEE AS PER THE PANCHANAMA, WERE SEIZED AND ATTACHED. THE ASSESSING OFFICER MADE ADDITION OF 11,02,500/- ON ACCOUNT OF JEWELLERY AND ASSESSED THE TOTAL INCOME OF THE ASSESSEE AT 13,40,060/-. THE ASSESSEE HAS CHALLENGED THE ISSUE MORE PARTICULARLY IN RESPECT O F ADDITION TOWARDS THE JEWELLERY FOUND AND SEIZED BEFORE LD CIT(A). AS OB SERVED BY THE LD. CIT(A) DURING THE COURSE OF SEARCH ACTION THE GOLD JEWELLERY TOTALING 4784.837 GRAMS WAS FOUND. OUT OF THE SAID JEWELLER Y, THE GOLD JEWELLERY TO THE EXTENT OF 750 GRAMS WAS CLAIMED TO BE BELONGING TO THE ASSESSEE. THE ASSESSING OFFICER MADE ADDITION ON T HE REASON THAT THE ASSESSEE HAS NOT PRODUCED THE RETURNS FILED UNDER T HE WEALTH TAX AND THE ASSESSEE HAS NOT EXPLAINED THE SOURCE OF ACQUIS ITION OF THE GOLD JEWELLERY FOUND DURING THE COURSE OF SEARCH ACTION. THE LD CIT(A) GIVE THE BENEFIT OF INSTRUCTION NO.1916 DATED 11.05.1994 . THE LD CIT(A) ALSO HELD THAT IT IS NOT UNCOMMON TO GET THE GIFTS CONSIDERING THE STATUS OF THE FAMILY. HE, THEREFORE GAVE THE SET OFF TO T HE EXTENT OF 650 GRAMS OF THE GOLD OUT OF 750 GRAMS CLAIMED BY THE ASSESSE E AND SUSTAINED THE ADDITION TO THE EXTENT OF 100 GRAMS OF JEWELLERY AM OUNTING TO 1,47,000/-. THE REASON GIVEN BY THE LD CIT(A) FOR PARTLY SUSTAINING THE ADDITION ARE AS UNDER: THE ALLEGATION OF THE A.O. THAT NO SUBMISSION REGAR DING SOURCE OF ACQUISITION OF GOLD FOUND HAS BEEN OFFERED IS NOT C ORRECT BECAUSE THE APPELLANT HAS FURNISHED THE SUBMISSION DT. 26.1 2.2011 IN CASE OF VAJAYKUMAR LODHA AND FAMILY IN WHICH, IT HAS BEE N STATED THAT THE APPELLANT HAS RECEIVED THE SAID GOLD ON OCCASIO N OF HER MARRIAGE HELD ON 10.02.2002. THE SAID SUBMISSION I S NOT CONSIDERED BY THE A.O. THE SAID JEWELLERY IS VERY MUCH REASONABLE HAVING REGARDS TO THE CIRCUMSTANCES, STA NDARD OF LIVING AND FAMILY BACKGROUND OF THE APPELLANT GROUP, ETC. 3. NOW THE ASSESSEE IS IN APPEAL BEFORE US. WE HEA RD THE PARTIES AND PERUSED THE RECORD. WE FIND THAT THE LD CIT(A) HAS ACCEPTED THAT IT IS NOT UNCOMMON TO GET THE GIFTS CONSIDERING THE ST ATUS OF THE FAMILY AND ALSO GIVEN THE SET OFF TO THE EXTENT OF 650 GMS . OF GOLD JEWELLARY. THE LD CIT(A) HAS ALSO CONSIDERED THE INSTRUCTION N O.1916, DATED 11.05.1994. THE ASSESSEE HAS NOT DECLARED THE GOLD JEWELLERY IN THE WEALTH TAX RETURNS NOR THE SOURCE OF THE ACQUISITIO N OF 100 GMS. OF THE GOLD JEWELLERY IS EXPLAINED BEFORE US. IN OUR OPIN ION, THE ADDITION SUSTAINED BY THE LD CIT(A) TO THE EXTENT OF 100 GMS . IS A REASONABLE 3 AND NEEDS TO BE CONFIRMED. WE, ACCORDINGLY, CONFIR M THE ADDITION AND DISMISS THE GROUND TAKEN BY THE ASSESSEE. 4. IN THE RESULT, THE ASSESSEE'S APPEAL IS DISMISSE D. PRONOUNCED IN THE OPEN COURT ON THIS THE 23 RD DAY OF JUNE, 2014. SD/- SD/- (G.S. PANNU) (R.S. PADVEKAR) ACCOUNTANT MEMBER JUDICIAL MEMBER PUNE, DATED 23 RD JUNE, 2014 GCVSR COPY TO:- 1) ASSESSEE 2) DEPARTMENT 3) THE CIT(A) I, NASHIK 4) THE CIT-I, NASHIK 5) THE DR, B BENCH, I.T.A.T., PUNE 6) GUARD FILE BY ORDER //TRUE COPY// SENIOR PRIVATE SECRETARY ITAT PUNE BENCHES, PUNE