R. Umamaheswar, Hyderabad V. Dy.CIT, Central Circle-5, Hyderabad

ITA 227/HYD/2014

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 87356 (ITAT-HYDERABAD)
• Duration Of Justice: 1 year(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-02-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 18-02-2015
• Assessment Year: 2010-2011
• Appeal Filed On: 13-02-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAJAT MITRA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH B', HYDERABAD BEFORE SHRI P.M.JAGTAP, ACCOUNTANT MEMBER AND SHRI SAKTIJIT DEY, JUDICIAL MEMBER ITA NO.227/HYD/2014 (ASSESSMENT YEARS 2010 - 11) SHRI R. UMAMAHESWAR, HYDERABAD (PAN A HLPR 3954 N ) V/S. DY. COMMISSIONER OF INCOME - TAX CENTRAL CIRCLE 5, HYDERABAD (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI K .C.DEVDAS RESPONDENT BY : SHRI RAJAT MITRA DR DATE OF HEARING 18 .0 2 .201 5 DATE OF PRONOUNCEMENT 20.02.2015 O R D E R PER P.M.JAGTAP, ACCOUNTANT MEMBER: THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF THE LEARNED COMMISSIONER OF INCOME - TAX(APPEALS) - 7, HYDERABAD DATED 11.12.2013 AND THE SOLITARY ISSUE AR I SING OUT OF THE SAME RELATES TO THE ADDITION MADE BY THE ASSESSING OFFICER ON ACCOUNT OF UNEXPLAINED JEWELL ER Y FOUND DURIN G TH E COU R SE OF SEARCH, WHICH IS SUSTAINED BY THE LEARNED CIT(A) TO THE EXTENT OF R S .3 LAKHS. 2. THE ASSESSEE, IN THE PR E SEN T CA S E, IS AN INDIVIDUAL. A SEARCH AND SEI Z URE ACTION UN D ER S132 WAS CONDUCTED IN THE C A S E OF THE ASSESSEE ON 7.10.2009. DURIN G THE COURSE OF SURVEY, JEWELLERY WEIG H I N G 1,096 GRAMS AND SILVER ARTICLES WEIGHING 2 KGS, WORTH RS. 14,79,990 AND R S .49,000 RESPEC TIVELY WERE FOUND FROM THE POSSESSION O F TH E ASSESSEE . WHILE E XPLAINING TH E SE VALUABLES FOUND DURING TH E COURSE OF SEAR C H, I T WAS SUBMITTED BY THE ASSESSEE T HAT I TA NO. 227 /HYD/201 4 SHRI R.UMAMAHESWAR , HYDERABAD 2 OUT OF THE GOLD 1,096 GRAMS , HE HAD PU R CH AS ED 625 GRAMS ON 3.12.2007 FOR A SUM OF R S .6 LAKHS AND TH E SAME WAS DULY DI S CLOSED IN THE FINANCIAL STATEMENT OF THE RELE V ANT YEAR. AS REGARDS THE BALANCE GOLD JEWELLERY OF 471 GRAMS, I T WAS SUBMITTED BY THE ASSESSEE T HAT THE SAME REPRESENTED S T REEDHAN OF HIS WIFE, WHICH WAS RECEIVED BY HER ON THE OCCASIO N OF MARRIAGE, BIRTH OF A C HILD AND SUBSEQUENT BIRTHDAYS AND OTHER FUNCTIONS OVER A PERIOD O F 20 TO 25 Y E ARS. THE EXPLANATION OF THE ASSESSEE AS REGARDS JEWELLERY REPRESENTING ST REEDHAN OF HIS WIFE REC E I V ED ON DIFF ER ENT OCCASIONS WAS NO T ACCEPTED BY THE A SSESSING OFFICER, IN THE ABSENCE OF ANY EVI D ENCE TO SUPPORT AND SUBSTANTIATE THE SAME. HE, THEREFORE, TR E ATED THE JEWELLERY OF THE VALUE OF R S .9,28,990 AS UN EX PL A INED AND AN ADDITION TO THAT EX T ENT WAS MADE BY HIM TO THE TOTAL INCOME O F THE ASSESSEE. 3. ON APPEAL, THE LEARNED C IT(A) PARTLY ACCEPTED THE EXPLANATION OF THE ASSESSEE AND ALLOWED RELIEF OF RS.6,28,990, THERE BY SUSTAINING THE ADDITION MADE BY THE ASSESSING OFFICER ON THIS ISSUE TO THE E X TENT OF R S.3 LAKH S . WHILE DOING SO, HE HELD THAT CREDI T TO THE E X TENT OF 250 GRAMS OF GOLD JEWEL L ERY COUL D REASONABL Y BE GIVEN ON AC C OUN T O F ST REEDHAN OF ASSESSEES WIFE AND BALANCE 220 GRAMS OF JEWELLERY SHOULD B E TR E ATED AS UN E XPLAIN E D, HAVING VALUE O F ABOUT R S .3 LAKHS. AGGRIEVED BY THE O R DER O F THE LEARNED CIT(A), ASSESSEE HAS P R EFERRED THIS APPEAL B E FORE THE TRIBUNAL . 4. WE HAVE HEARD THE ARGUMENTS OF BOTH THE SIDES AND ALSO PERUSED THE RELEVANT MATERIAL ON RECORD. THE LEARNED COU N SEL FOR TH E ASSESSEE HAS R E LI E D ON THE INS TRU C TION OF THE CB DT NO.19 1 6 OF 11.5.199 4 LAYING DOWN THE GUIDELINES THAT IN THE C A S E OF A PERSON NOT AS S ESSED TO WEALTH TAX, GOLD JEWELLERY AND ORNAMENTS TO THE I TA NO. 227 /HYD/201 4 SHRI R.UMAMAHESWAR , HYDERABAD 3 E X TENT OF 500 GRAMS FOR A M ARRIED LADY NEED NOT B E SEIZED. A L T H OUGH THE LEARNED DEPARTMENTAL REPRESENTATIVE HAS CONTENDED THAT THE SAID GUIDELINE S LAID DOWN IN THE CIRCULAR OF THE CBDT ARE APPLICABLE ONLY FOR A S E IZURE OF JEWELLERY AND ORNAMENTS DURIN G T H E COU R SE OF SEARCH, IT IS OB S ERVED THAT THE T R IBUNAL IN VARIOUS C A S ES HAS R E LI E D ON THE SAID CIRCULAR TO HOL D THAT THE GUIDELINES LAID DOWN BY THE CBDT IN CIRCULAR N O. 1916 ARE SUGGESTIVE OF NORMAL QUANTITY OF GOLD ORNAMENTS HELD BY ANY INDIAN FAMILY. IN ONE SUCH DECISION S REND E RED IN TH E C A S E OF ACIT V/S. RAMESHCHANDRA R. PATEL ( 89 I TD 223 ) , AHMEDABAD B ENCH OF ITAT HAS HELD THAT THE C BDT INST R UC T ION NO.19 16 DATED 11.5.199 4 IMPLIEDLY SU GG EST S THE QUANTITY OF JEWEL L ERY THAT A FAMILY IS SUPPOSED TO HOLD AS RECEIVED AT THE TIM E OF MARRIAGE FROM PARENTS AND IN LAWS. IT WAS ALSO HELD THAT THOUGH T H E SAID I NST R U C TION GIVES A GUIDELINE IN THE MATTER OF S E I Z URE, THE S AME C AN BE EXTENDED TO TR E AT THE QUANTU M OF JEWE L LERY AS MENTIONED THEREIN AS EXPLAINED , K EEPING IN VIEW THE CUSTOMS AND PRACTICES IN THE INDIAN SOCIETY. KEEPING IN VIEW THE D ECISIO N S O F TH E TRIBUNAL AS WELL AS THE I NST R U C TION NO. 1916 O F THE CBDT, WE HOL D T H A T THE GOLD JEWE L LERY OF 472 GRAMS FOUND DURIN G T H E COURSE OF SEARCH CAN REASONABL Y BE TREATED AS EXPLAIN E D, B E ING THE S T REEDHAN O F THE ASSESSEE S WIFE, HAVING B E EN REC E IVED BY HER ON THE OCCASION O F MARRIAGE AS WELL AS SUBSEQUENT OCCASIONS OVER THE PERIOD. ACCOR D INGLY, WE DELETE THE ADDITION OF R S .3 LAKH S MADE BY THE ASSESSING OFFICER AND SUSTAINED BY THE LEARNED CIT(A) ON THIS ISSUE AND ALLOW THIS APPEAL OF THE ASSESSEE. 5 . IN THE RESULT, ASSESSEES APPEAL IS ALLOWED . O RDER PRONOUNCED IN THE COURT ON 20 TH FEBRUARY, 2015. SD/ - SD/ - ( SAKTIJIT DEY) ( P.M.JAGTAP ) JUDICIAL MEMBER ACCOUNTANT MEMBER I TA NO. 227 /HYD/201 4 SHRI R.UMAMAHESWAR , HYDERABAD 4 DT/ - 20 TH FEBRUARY, 201 5 COPY FORWARDED TO: 1. SHRI R. UMAMAHESWAR , H.NO.5 - 5 - 238/3, PLOT NO.32, MAITRI NAGAR COLONY, KUKATPALLY, HYDERABAD 2 . DY. COMMISSIONER OF INCOME - TAX , CENTRAL CIRCLE 5 , HYDERABAD 3. 4. COMMISSIONER OF INCOME - TAX(APPEALS) VII, HYDERABAD COMMISSIONER OF INCOME - TAX CENTRAL , HYDERABAD 5 . DEPARTMENTAL REPRESENTATIVE, ITAT, HYDERABAD. B.V.S