Pallavi Mittal, Kaithal V. DCIT, Central Circle, Karnal

ITA 1794/DEL/2018

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 5215 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 6 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-09-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: F
• Assessment Year: 2014-2015
• Appeal Filed On: 14-03-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SHIVANI BANSAL

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH F, NEW DELHI BEFORE SH. AMIT SHUKLA, JUDICIAL MEMBER DR. B. R. R. KUMAR, ACCOUNTANT MEMBER (THROUGH VIDEO CONFERENCING) ITA NO. 1794/DEL/2018 : ASSTT. YEAR : 2014-15 PALLAVI MITTAL, C/O VINOD KUMAR BINDAL & CO., CAS, SHIV SUSHIL BHAWAN, D-219, VIVEK VIHAR, PHASE-1, NEW DELHI-110095 VS DCIT, CENTRAL CIRCLE, KARNAL (APPELLANT) (RESPONDENT) PAN NO. AA LPA3278K ASSESSEE BY : SH. VINOD BINDAL, CA REVENUE BY : MS. SHIVANI BANSAL, SR. DR DATE OF HEAR ING: 15 . 0 9 .20 2 1 DATE OF PRONOUNCEMENT: 21 .0 9 .20 2 1 ORDER PER DR. B. R. R. KUMAR, ACCOUNTANT MEMBER: THE PRESENT APPEAL HAS BEEN FILED BY THE ASSESSEE AGAINST THE ORDER OF LD. CIT(A)-2, GURGAON DATED 29.12.2017 . 2. FOLLOWING GROUNDS HAVE BEEN RAISED BY THE ASSESS EE: 1. THE LD. CIT (A) ERRED IN LAW AND ON FACTS IN CO NFIRMING THE ADDITION OF RS.41,48174/- AS UNDISCLOSED INVEST MENT IN JEWELLERY- (A) EVEN WHEN THE JEWELLERY VALUED AT RS.27,33,536/- WAS NOT SEIZED AT THE TIME OF SEARCH AND, THUS, ACCEPTED TO THAT EXTENT BY THE REVENUE AS MADE FROM THE DISCLOSED SOURCES FOLLOWING THE CBDT INSTRUCTIO N NO. 1916 DATED 11.05.1994; AND (B) EVEN WHEN THE REMAINING JEWELLERY VALUED AT RS.14,14,638/- WAS THE FAMILY JEWELLERY ACQUIRED BY THE ASSESSEES FATHER-IN-LAW, MR. SUBHASH CHANDER MITTAL, AND WHO HAD DECLARED THE EQUIVALENT SUM AS ITA NO. 1794/DEL/2018 PALLAVI MITTAL 2 HIS UNDISCLOSED INCOME IN HIS RETURN OF INCOME FILE D FOR THE A.Y. 2014-15 RELEVANT TO THE DATE OF SEARCH . THUS, TOTAL ADDITION OF RS.41,48,174/- SO MADE MUST BE DELETED. 3. HEARD THE ARGUMENTS OF BOTH THE PARTIES AND PERU SED THE MATERIAL AVAILABLE ON RECORD. 4. A SEARCH & SEIZURE OPERATION U/S 132(1) OF THE I NCOME TAX ACT, 1961 HAS BEEN CONDUCTED AT THE RESIDENTIAL AS WELL AS BUSINESS PREMISES OF SH. VISHNU OVERSEAS PVT. LTD. ON 17.01.2014. IN CONNECTION WITH THE PROCEEDINGS, LOC KER NO. 6A OF UNION BANK OF INDIA, AMBALA, KIATHAL WAS OPERATE D AND THE JEWELLERY FOUND THEREOF BELONGING TO THE ASSESSEE W ORTH RS.41,48,174/- WAS FOUND OUT OF WHICH JEWELLERY AMO UNTING TO RS.14,14,638/- SEIZED BY THE DEPARTMENT. THE ASSESS ING OFFICER HAS BROUGHT THE ENTIRE AMOUNT OF JEWELLERY TO TAX H OLDING THAT THE DEPARTMENT HAS ALREADY GIVEN RELIEF OF JEWELLER Y WORTH RS.23,26,432/- FOUND FROM THE RESIDENCE AT KAITHAL IN POSITION OF SH. SUBHASH CHANDER MITTAL, FATHER-IN-LAW OF THE ASSESSEE. 5. WE FIND FROM THE RECORDS THAT THE TOTAL JEWELLER Y FOUND FROM THE RESIDENTIAL PREMISES AND THE LOCKERS OF TH E FAMILY OF SH. S.C. MITTAL AMOUNTS TO RS.2,05,55,951/-. THE DE TAILS OF THE TOTAL JEWELLERY FOUND AS PER THE PANCHNAMA PREPARED AGAINST THE SINGLE WARRANT ISSUED IN THE NAME OF SH. S.C. M ITTAL AND ALL OTHER FAMILY MEMBERS IS AS UNDER: S. NO. NAME ITEMS AMOUNT(RS.) 1. SH. SUBHASH CHANDER MITTAL (JOINT FAMILY WITH 8 MEMBERS) JEWELLERY SILVER 15,25,117/- 8,01,315/- 2. SH. SUBHASH CHANDER MITTAL (LOCKER NO. 81, PNB, KAITHAL) (LOCKER NO. 277, PNB, KAITHAL) JEWELLERY JEWELLERY 12,55,654/- 40,27,042/- 3. SMT. PALLAVI MITTAL JEWELLERY 41,48,174/- 4. SH. HITESH MITTAL JEWELLERY 52,30,179/- 5. SHRUTI MITTAL JEWELLERY 35,68,470/- TOTAL 2,05,55,951/- ITA NO. 1794/DEL/2018 PALLAVI MITTAL 3 6. OUT OF THE JEWELLERY WORTH OF RS.2,05,55,951/-, THE JEWELLERY WORTH RS.77,52,900/- WEIGHING ABOUT 2550 GMS. WAS NOT SEIZED AND JEWELLERY WORTH RS.1,28,03,000/- HAS BEEN SEIZED BY THE DEPARTMENT. SH. S.C. MITTAL HAS DISCL OSED AN AMOUNT OF RS.1,47,00,000/- AS UNDISCLOSED SPECULATI VE PROFIT FROM RICE IN HIS RETURN OF INCOME FOR THE A.Y. 2014 -15 THE APPLICATION OF WHICH RESULTED IN THE PURCHASE OF JE WELLERY. 7. THE DETAILS OF THE JEWELLERY FOUND, SEIZED, RELE ASED AND THE UNDISCLOSED INCOME DECLARED IS AS UNDER: SUBHASH CHANDER VALUE SEIZED RELEASED (JOINT WITH OTHER 8 FAMILY MEMBERS ) CASH 328310 - 328310 JEWELLARY 1525117 - 1525117 SILVER 801315 - 801315 SUBHASH CHANDER (LOCKER NO. 81 PNB KAITHAL) JEWELLARY 1255654 1255654 - SUBHASH CHANDER (LOCKER NO. 277 PNB KAITHAL ) JEWELLARY 4027042 4027042 - NEERAJ MITTAL VALUE SEIZED RELEASED (JOINT WITH OTHER 8 FAMILY MEMBERS ) CASH - - - JEWELLARY - - - SILVER - - - PALLAVI MITTAL VALUE SEIZED RELEASED (JOINT WITH OTHER 8 FAMILY MEMBERS ) CASH - - - JEWELLARY - - - SILVER - - - PALLAVI MITTAL (LOCKER NO. 6A UBI KAITHAL) JEWELLARY 4148174 1414638 2733536 HITESH MITTAL VALUE SEIZED RELEASED (FLAT NO. 1001, SABRI BASERA BUILDING, OPP. DIAMOND GARDEN, CHEMBUR, MUMBAI) JEWELLARY 5230179 3644840 1585339 ITA NO. 1794/DEL/2018 PALLAVI MITTAL 4 SHRUTI MITTAL VALUE SEIZED RELEASED (LOCKER NO. 4 KOTAK MAHINDRA MUMBAI) JEWELLARY 3568470 2460870 1107600 BLANK SHARE TRANSFER DEED TOTAL 20884261 12803044 8081217 8. FROM THE ABOVE, WE FIND THAT SH. S. C. MITTAL, F ATHER-IN-LAW OF THE ASSESSEE STAYING UNDER THE SAME ROOF, AS THE HEAD OF THE JOINT FAMILY HAS DISCLOSED AN AMOUNT EQUAL TO THE U NACCOUNTED JEWELLERY SEIZED BELONGING TO THE ENTIRE FAMILY AS AN UNDISCLOSED INCOME. THE VARY PURPOSE OF CENTRALIZATION OF THE C ASES OF THE FAMILY MEMBERS IS TO HAVE A COMPREHENSIVE UNDERSTAN DING AND DETERMINATION OF UNDISCLOSED INCOME. IN THE INSTANT CASE, SINCE THE UNDISCLOSED INCOME DETERMINED TALLIES WITH THE UNDISCLOSED INCOME DECLARED IN THE RETURN, NO SEPARATE ADDITION IN THE HANDS OF THE ASSESSEE IS CALLED FOR. 9. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED. ORDER PRONOUNCED IN THE OPEN COURT ON 21/09/2021. SD/- SD/- (AMIT SHUKLA) (DR. B. R. R. KUMAR) JUDICIAL MEMBER ACC OUNTANT MEMBER DATED: 21/09/2021 *SUBODH* COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR JEWELLARY SEIZED PERSON WISE S .C. MITTAL 1255654 S.C. MITTAL 4027042 PALLAVI MITTAL 1414638 HITESH 2460870 HITESH 3644840 TOTAL 1,28,03,044 MISC. INCOME DECLARED JEWELLARY 12803044 CASH 896956 MITTAL & CO. 1000000 14700000