A.C.I.T., Circle-2, Gwalior V. Smt. Meeta Devi Garg, Morena

ITA 2/AGR/2013

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 0639 (ITAT-AGRA)
• Duration Of Justice: 6 year(s) 4 month(s) 15 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 16-05-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 08-05-2013
• Assessment Year: 2010-2011
• Appeal Filed On: 01-01-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: K C AGARWAL SH PIYUSH SING HAL
• Keywords: Additional evidence; Valuation report

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, AGRA BENCH, AGRA BEFORE : SHRI BHAVNESH SAINI, JUDICIAL MEMBER AND SHRI A.L. GEHLOT, ACCOUNTANT MEMBER ITA NO. 02/AGRA/2013 ASSTT. YEAR : 2010-11 A.C.I.T., CIRCLE 2, VS. SMT. MEETA GARG, GWALIOR. K.S. COMPLEX, TABER DHANI, JIWAJI GANJ, MORENA. (PAN: AAYPG 2497 H) (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI WASEEM ARSHAD, SR. D.R. RESPONDENT BY : SHRI K.C. AGARWAL, SH. PIYUSH SING HAL, CA. DATE OF HEARING : 08.05.2013 DATE OF PRONOUNCEMENT OF ORDER : 24.05.2013 ORDER PER BHAVNESH SAINI, J.M.: THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF LD. CIT(A), GWALIOR DATED 29.10.2012 FOR THE ASSESSMENT YEAR 20 10-11, CHALLENGING THE DELETION OF ADDITION OF RS.10,48,057/- ON ACCOUNT O F UNEXPLAINED JEWELLERY IN VIOLATION OF RULE 46A OF THE IT RULES WITHOUT GIVIN G OPPORTUNITY TO THE AO. 2. DURING THE COURSE OF SEARCH U/S. 132, GOLD JEWEL LERY WEIGHING 1783 GMS WAS FOUND. THE AO WHILE COMPLETING THE ASSESSMENT ACCEP TED THE GOLD JEWELLERY WEIGHING 1075.950 GMS. SHOWN IN VALUATION REPORT DA TED 31.03.2005 AS EXPLAINED ITA NO. 02/AGRA/2013 2 AND MADE THE ADDITION OF UNEXPLAINED GOLD JEWELLERY WEIGHING 707.05 GMS. AMOUNTING TO RS.9,28,057/- AND ALSO MADE FURTHER AD DITION ON ACCOUNT OF DIAMOND JEWELLERY OF RS.1,20,000/- AS UNEXPLAINED. THUS, TO TAL ADDITION WAS MADE OF RS.10,48,057/-. THE ASSESSEE SUBMITTED BEFORE THE L D. CIT(A) THAT ENTIRE JEWELLERY IS EXPLAINED. IT WAS SUBMITTED THAT THE AO ACCEPTED THE JEWELLERY OF 1075.950 GMS, WHICH WAS SHOWN IN THE VALUATION REPORT DATED 31.03 .2005. THE ASSESSEE MADE PURCHASE OF JEWELLERY ON 14.12.2005 OF 378.47 GMS. FURTHER JWELLERY BELONG TO MINOR DAUGHTERS MS. CHAHAT GARG OF 334.71 GMS AND M S. ARYA GARG OF 318.16 GMS. FURTHER, JEWELLERY WEIGHING 121.77 GMS. BELONG TO HER HUSBAND, SHRI SAURABH GARG. THEREFORE, TOTAL JEWELLERY EXPLAINED WAS 2229 .06 GMS, WHICH WAS MORE THAN THE JEWELLERY FOUND DURING THE COURSE OF SEARCH. TH E ASSESSEE FILED BALANCE SHEET OF M/S. K.S. FOOD PRODUCTS THROUGH WHICH THE PAYMENTS OF JEWELLERY PURCHASED WAS MADE. THE ASSESSEE FILED COPY OF WEALTH-TAX RETURN FOR THE ASSESSMENT YEAR 2008- 09 SHOWING THE JEWELLERY OF SELF AND HER TO MINOR D AUGHTERS DECLARED TO THE REVENUE DEPARTMENT. THE LD. CIT(A) ACCEPTED THE CON TENTION OF THE ASSESSEE. TOTAL JEWELLERY HAS BEEN EXPLAINED THROUGH EVIDENCE ON RE CORD. THE LD. CIT(A), HOWEVER, DID NOT ACCEPT THE JEWELLERY PURCHASED BY THE ASSESSEE BECAUSE IT WAS IN VIOLATION OF RULE 46A AS NO EVIDENCE WAS FURNISHED BEFORE THE AO. IT WAS FOUND THAT IF THE EXPLANATION OF THE JEWELLERY OF THE FAM ILY IS TAKEN INTO CONSIDERATION AND DECLARED IN WEALTH-TAX RETURN, THE SAME WOULD BE 18 50.59 GMS, WHICH IS MORE THAN ITA NO. 02/AGRA/2013 3 THE JEWELLERY FOUND DURING THE COURSE OF SEARCH. TH E ADDITION OF RS.9,28,057/- FOR UNEXPLAINED GOLD JEWELLERY WAS DELETED. THE ASSESSE E FURTHER EXPLAINED FROM THE WEALTH TAX RETURN THAT THE ASSESSEE HAS ALSO DECLAR ED DIAMOND JEWELLERY OF RS.1,88,280/- BELONGING TO HER AND HER TWO MINOR DA UGHTERS. THEREFORE, THE SAME IS ALSO EXPLAINED. THE LD. CIT(A) ACCEPTED THE CONTENT ION OF THE ASSESSEE AND ALSO DELETED THE ADDITION OF RS.1,20,000/-. 3. THE LD. DR RELIED UPON THE ORDER OF THE AO AND S UBMITTED THAT THE ADDITIONAL EVIDENCES WEE CONSIDERED IN VIOLATION OF RULE 46A. ON THE OTHER HAND, THE LD. COUNSEL FOR THE ASSESSEE REITERATED THE SUBMISSIONS MADE BEFORE THE AUTHORITIES BELOW AND REFERRED TO PB-4 TO 8, WHICH IS REPLY FIL ED BEFORE THE AO ON DATED 25.11.2011 ALONG WITH DOCUMENTS AND PB-49 TO 57 ARE THE WEALTH-TAX RETURN OF ASSESSEE FOR THE ASSESSMENT YEAR 2008-09 ALONG WITH COMPUTATION AND SUBMITTED THAT THERE IS NO VIOLATION OF RULE 46A IN THE MATTE R. 4. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AND DO NOT FIND ANY JUSTIFICATION TO INTERFERE WITH THE ORDER OF THE LD. CIT(A) IN DE LETING THE ADDITION. THE LD. COUNSEL FOR THE ASSESSEE REFERRED TO THE REPLY OF A SSESSEE FILED BEFORE THE AO (PB 4 TO 8) ON 25.11.2011 IN WHICH THE ASSESSEE EXPLAINED GOLD JEWELLERY AND DIAMOND FOUND DURING THE COURSE OF SEARCH. SUBSTANTIAL JEWE LLERY HAVE BEEN DECLARED IN THE ITA NO. 02/AGRA/2013 4 WEALTH-TAX RETURN FOR THE ASSESSMENT YEAR 2008-09. THEREFORE, THE SAME IS THE RECORD OF THE REVENUE AND WOULD EXPLAIN THAT THE AS SESSEE AND HER FAMILY MEMBERS POSSESSED MORE JEWELLERY THAN WAS FOUND IN THE SEAR CH, WHICH WAS ALREADY DISCLOSED TO THE REVENUE DEPARTMENT. THUS, THERE IS NO VIOLATION OF RULE 46A IN THE MATTER. THE ASSESSEE EXPLAINED GOLD JEWELLERY/D IAMOND FOUND DURING THE COURSE OF SEARCH. THUS, THE LD. CIT(A) ON PROPER APPRECIAT ION OF FACTS AND MATERIAL ON RECORD RIGHTLY DELETED THE ADDITION. THE DEPARTMENT AL APPEAL FAILS AND IS ACCORDINGLY DISMISSED. 5. IN THE RESULT, THE DEPARTMENTAL APPEAL IS DISMIS SED. ORDER PRONOUNCED IN THE OPEN COURT. SD/- SD/- (A.L. GEHLOT) (BHAVNESH SAINI) ACCOUNTANT MEMBER JUDICIAL MEMBER *AKS/- COPY OF THE ORDER FORWARDED TO : 1. APPELLANT 2. RESPONDENT 3. CIT(A), CONCERNED BY ORDER 4. CIT, CONCERNED 5. DR, ITAT, AGRA 6. GUARD FILE SR. PRIVATE SECRETARY TRUE COPY