Smt. Bhartiben Navinchandra Bhalodia, RAJKOT-GUJARAT V. The Assistant Commr. Income Tax,Cen.Cir-1, RAJKOT-GUJARAT

ITA 268/RJT/2015

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 2277 (ITAT-RAJKOT)
• Duration Of Justice: 8 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-02-2016
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Next Hearing Date: 03-12-2015
• Assessment Year: 2012-2013
• Appeal Filed On: 09-06-2015
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: YOGESH PANDEY
• Assessee Lawyers: HARISH RANPURA
• Keywords: Unexplained investment
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL RAJKOT BENCH , RAJKOT BEFORE: S H RI PRAMOD KUMAR , ACCOUNTANT MEMBER AND SHR I S. S. GODARA , JUDICIAL MEMBER [CONDUCTED THROUGH E - C OURT AT AHMEDABAD] SMT. BHARTIBEN NAVINCHANDRA BHALODIA, 6102, TAKSHASHEELA APARTMENT, NR. PHULCHHAB CHOWK, RAJKOT PAN: ABPPB7871G (APPELLANT) VS THE ACIT, CENTRAL CIRCLE - 1, RAJKOT (RESPONDENT) REVENUE BY : S H RI YOGESH PANDEY , D . R. ASSESSEE BY: S H RI HARISH RANPURA , A.R. DATE OF HEARING : 03 - 12 - 2 015 DATE OF PRONOUNCEMENT : 26 - 02 - 2 016 / ORDER P ER : S. S. GODARA , JUDICIAL MEMBER : - THI S ASSESSEE S APPEAL FOR A.Y. 2012 - 13 , AR ISES FROM ORDER OF THE CIT(A) - 11, AHMEDABAD DATED 24 - 03 - 2015 IN APPEAL NO. CIT(A) - 11 / 550 - R/CC.1/2014 - 15 , IN PROCEEDINGS UNDER SECTION 143(3) OF THE INCOME TAX A CT, 1961; IN SHORT THE ACT . I T A NO . 268 / RJT /20 15 A SSESSMENT YEAR 2012 - 13 I.T.A NO. 268 /RJT /20 15 A.Y. 2012 - 13 PAGE NO SMT. BHARTIBEN NAVINCHANDRA BHALODIA VS. ACIT 2 2. THE ASSESSEE S PLEADINGS CHALLENGE THE LOWER APPELLATE ORDER AFFI RMING ASSESSING OFFICER S ACTION IN ADDING UNEXPLAINED INVESTMENTS IN DIAM ONDS AND SILVER ARTICLES/JEWELLE RY OF RS. 3,20,000/ - AND RS. 1,61,850/ - ; RESPECTIVE LY. 3. THE ASSESSEE - INDIVIDUAL DERIVES INCOME FROM OTHER SOURCES. THE DEPARTMENT CARRIED OUT A SEARCHING IN HER PREMISES ON 08 - 09 - 2011. SHE FILED RETURN ON 27 - 07 - 2012 STATING INCOME OF RS. 4,59,688/ - . THE ASSESSING OFFICER TOOK UP SCRUTINY. HE REVERT ED BACK TO SEARCH PROCEEDINGS. THE ASSESSEE S BANK LOCKER CONTAINED DIAMONDS OF 41.99 CARATS. THE ASSESSING OFFICER OBSERVED THAT ASSESSEE WAS ABLE TO PRODUCE BILLS/SUPPORTING DOCUMENTS PERTAINING TO 34.71 CARATS ONLY LEAVING BEHIND BALANCE FIGURE OF 7.2 8 CARATS. THE ASSESSEE FILED WEALTH TAX RETURN ON HER MOTHER - IN - LAW SMT. SAVITABEN IN SUPPORT ALONG WITH HER CONFIRMATION. THE ASSESSING OFFICER OBSERVED THAT THE SAID RETURN DID NOT TALK ABOUT ANY DIAMOND JEWEL L E RY. HE ACCORDINGLY COMPUTED VALUE OF DIAM ONDS WEIGHING 7.28 CARATS AS RS.3,20,000/ - AND ADDED THE SAID AMOUNT AS UNEXPLAINED INVESTMENT IN ASSESSEE S HAND VIDE ASSESSMENT ORDER DATED 20 - 12 - 2013. 4. WE COME TO SILVER JEWELE RY/ARTICLES ADDITION OF RS. 1,61,850/ - . THE ASSESSEE S SILVER ARTICLES DURING THE COURSE OF SEARCH WEIGHED 9.961 KGS OUT OF WHICH SHE COULD RECONCILE WEIGHT OF 6.800 KGS IN THE HANDS OF HER HUF LEAVING BEHIND THE BALANCE WEIGHT OF 3.16 KGS. THE ASSESSEE ATTRIBUTED THIS BALANCE FIGURE TO HAVE RECEIVED ON I.T.A NO. 268 /RJT /20 15 A.Y. 2012 - 13 PAGE NO SMT. BHARTIBEN NAVINCHANDRA BHALODIA VS. ACIT 3 VARIOUS CUSTOMARY OCC ASIONS. THE ASSESSING OFFICER TURNED THE SAME TO BE VERY GENERAL EXPLANATION AND MADE THE IMPUGNED ADDITION. 5. THE CIT(A) AFFIRMS ASSESSING OFFICER ACTION. 6. WE HAVE HEARD RIVAL CONTENT IONS. WE COME TO DIAMOND JEWELLE RY ADDITION OF RS. 3.20,000/ - . IT EMERGES THAT THE ASSESSEE S MOTHER IN LAW FILED HER WEALTH TAX RETURN FOR ASSESSMENT YEAR 1994 - 95 STATING GOLD ORNAMENTS HAVING VALUE OF RS. 4,50,823 / - . SHE DECLARED FURTHER JEWELLE RY OF RS. 43,000/ - ALONG WITH LIST THEREOF. IT EMERGES FROM HER CONFIR MATION THAT THE EXC ESS JEWELLE RY FOUND IN LOCKER WEIGHING 7.33 CARATS (SUPRA) BELONGED TO HER. THE ASSESSING OFFICER NO - WHERE RECONCILE THE SAME WITH THE ARTICLES DECLARED IN WEALTH TAX RETURN HAVING VALUE OF RS. 43,000/ - HEREINABOVE. THIS CONFIRMATION H AS BEEN BRUSHED ASIDE WITHOUT BEING SPECIFICALLY IN ASSESSMENT OR LOWER APPELLATE ORDER. WE ACCEPT ASSESSEE S SUBMISSIONS IN THESE FACTS AND CIRCUMSTANCES FOR WANT OF ANY SPECIFIC REJECTION AND HOLD THAT SHE HAS BEEN ABLE TO EXPLAIN HER MOTHER IN LAW TO B E THE RIGHTFUL OWNER O F THE EXCESS DIAMOND JEWELLE RY WEIGHING 7.28 CARATS. THE CORRESPONDING ADDITION OF RS. 3,20,000/ - IS ACCORDINGLY DELETED. 7. WE COME TO SILVER ARTICLES/JEWELLERY ADDITION OF RS. 1,61,850/ - . THE ASSESSEE PLEADED HER SOCIO - E CONOMIC STATUS FOR JUSTIFYING THE EXCESS SILVER QUANTITY OF 6.800 KGS AS TO HAVE BEEN RECEIVED ON VARIOUS CUSTOMARY OCCASIONS AND FUNCTIONS. THE ASSESSING OFFICER I.T.A NO. 268 /RJT /20 15 A.Y. 2012 - 13 PAGE NO SMT. BHARTIBEN NAVINCHANDRA BHALODIA VS. ACIT 4 TREATS THIS TO BE VERY MUCH GENERAL IN NATURE. WE ARE OF THE VIEW IN THESE PECULIAR FACTS AND CIRC UMSTANCES THAT THUMB RULE ON THIS DESERVES TO BE APPLIED KEEPING IN MIND THE ASSESSEE S SOCI O - ECONOMIC STATUS. WE PROCEED ACCORDINGLY IN LARGER INTEREST OF JUSTICE AND INFER THAT THE ASSESSEE MUST HAVE RECEIVED SILVER QUANTITY OF 1.83 KGS I.E. 50% OF 3.16 1 KGS ON SUCH FAMILY FUNCTIONS AND CUSTOMARY OCCASION. THE REMAINING FIGURE IS ACCORDINGLY HELD TO HAVE BEEN REMAINED UNEXPLAINED . THE IMPUGNED ADDITION OF RS. 1,61,850/ - IS DELETED TO THE TUNE OF RS. 80,925/ - . AN EQUAL AMOUNT OF UNEXPLAINED INVESTMENT IN QUESTION IS SUSTAINED. THIS ARGUMENT IS PARTLY ACCEPTED. 8 . THIS ASSESSEE S APPEAL IS PARTLY ALLOWED. ORDER PR ONOUNCED IN THE OPEN C OUR T ON 26 - 02 - 201 6 SD/ - SD/ - (PRAMOD KUMAR ) ( S. S. GODARA ) ACCOUNTANT MEMBER JUDICIAL MEMBER AHMEDABAD : DATED 26 /02 /2016 AK / COPY OF ORDER FORWARDED TO: - 1. ASSESSEE 2. REVENUE 3. CONCERNED CIT 4. CIT (A) 5. DR, ITAT, AHMEDABAD 6. GUARD FILE. BY ORDER, ASSISTANT REGISTRAR, INCOME TAX AP PELLATE TRIBUNAL, RAJKOT