MOHANLAL HARIDAS PURWAT, PUNE V. DCIT, CC- 8(3), MUMBAI

ITA 4995/MUM/2018

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 8558 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 10 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-07-2020
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: 2013-2014
• Appeal Filed On: 28-08-2018
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: CHAITANYA ANJARIA LD
• Assessee Lawyers: SEEMA M LONKAR LD

Judgement Text

1 ITA NO.4995/MUM/2018 MOHANLAL HARIDAS PURWAT ASSESSMENT YEAR-2013-14 - IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH, MUMBAI , SHAMIM YAHYA, ACCOUNTANT MEMBER ./ I.T.A. NO.4995/MUM/2018 ( ! '#! / ASSESSMENT YEAR:2013-14) SHRI MOHANLAL HARIDAS PURWAT GIRIDHAR NAGAR, FLAT NO.15 BUILDING NO.D-16, WARJE, PUNE-411 058. / VS. DY. COMMISSIONER OF INCOME TAX CENTRAL CIRCLE-8(3) 676A, 6 TH FLOOR, AAYAKAR BHAVAN MAHARSHI KARVE ROAD MUMBAI-400 020. ./ ./ PAN/GIR N O. AAZPP 3394 H ( / APPELLANT ) : ( '# / RESPONDENT ) $ / APPELLANT BY : MS SEEMA M. LONKAR - LD. AR '#$ / RESPONDENT BY : SHRI CHAITANYA ANJARIA - LD. DR / DATE OF HEARING : 19/02/2020 / DAT E OF PRONOUNCEMENT : 15/07/2020 / O R D E R SHAMIM YAHYA (ACCOUNTANT MEMBER):- 1. THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST ORDER OF LEARNED CIT APPEAL DATED 06/06/2018 AND PERTAINS TO ASSESSMENT YEAR 2013-14. 2. THE ISSUE RAISED IS THAT LEARNED CIT APPEALS ERR ED IN SUSTAINING THE DISALLOWANCE OF RUPEES 562,400 ON ACCOUNT OF UNEXPL AINED GOLD JEWELLERY. 2 ITA NO.4995/MUM/2018 MOHANLAL HARIDAS PURWAT ASSESSMENT YEAR-2013-14 3. BRIEF FACTS OF THE CASE ARE THAT PURSUANT TO SEA RCH OPERATIONS AT THE ASSESSEES PREMISES CERTAIN JEWELLERY WERE DETECTED BY THE DEPARTMENT, AS PER THE CONTENTION OF LD. COUNSEL OF THE ASSESSEE . ITEMS NET WEIGHT RS. GOLD JEWELLERY 831.74 24,21,206 SILVER 7433.65 4,62,095 4. AFTER CONSIDERING THE EXPLANATION AND EVIDENCES SUBMITTED BY THE ASSESSEE THE ASSESSING OFFICER MADE AN ADDITION OF RS.562,400 MADE ON ACCOUNT OF UNEXPLAINED GOLD . THIS WAS SUSTAINED B Y THE APPEALS. 5. AGAINST THE ABOVE ORDER ASSESSEE HAS FILED APPEA LS BEFORE US. THE LD. COUNSEL OF THE ASSESSEE CONTENDED THAT AS AGAINST T HE JEWELLERY AS FOUND IN SEARCH THE ASSESSING OFFICER HAS ERRED IN MAKING THE ADDITION BY TAKING THE VALUE OF GOLD FOUND ON SEARCH AT RS.28,83,301, WHICH IS ACTUALLY THE COMBINED FIGURE OF GOLD AND SILVER. HENCE THE ASSES SEE CONTENDED THAT ADDITION OF RS.462,095 IS UNJUSTIFIED. 6. UPON CAREFUL CONSIDERATION WE FIND THAT THE SUBM ISSIONS OF THE ASSESSEE ARE COGENT. THE ASSESSING OFFICER HAS STAR TED BY CONSIDERING THE VALUATION OF GOLD AT THE QUANTITY OF 831.74 AT RS.2 8,83,301 AND HAS FINALLY 3 ITA NO.4995/MUM/2018 MOHANLAL HARIDAS PURWAT ASSESSMENT YEAR-2013-14 ADDED A SUM OF RS.562,400 AS UNEXPLAINED GOLD. HOWE VER, IT IS THE FACT THAT ACTUALLY THE VALUATION OF GOLD SEIZED WAS RS.24,21, 206. IN THE VALUATION THE SILVER FOUND WAS RUPEES 462 095, HENCE THE INCLUSIO N OF SILVER VALUED AT RUPEES 462 095 INTO GOLD ORNAMENTS AND CONSEQUENT A DDITION TO THIS EXTENT IS NOT SUSTAINABLE. 7. ACCORDINGLY WE DIRECT THE ADDITION OF RUPEES 462 ,095 AS NOT JUSTIFIED, AND THE SAME IS DIRECTED TO BE DELETED. 8. ANOTHER ASPECT OF ASSESSEES GRIEVANCE IS THAT T HE ASSESSING OFFICER, DESPITE MENTIONING AND CONSIDERING THE CBDT CIRCULA R IN THIS REGARD HAS NOT PROVIDED THE NECESSARY RELIEF FOR THE JEWELLERY DESCRIBED BY THE CBDT CIRCULAR NO.1916 DATED11/05/1994. AS PER THE ASSES SEES CONTENTION ASSESSEE SHOULD HAVE BEEN GRANTED RELIEF OF 600 GMS ON HIS AND HIS WIFES BELONGINGS. AS AGAINST THIS, HE ASSESSING OFFICER H AS GRANTED RELIEF OF ONLY 500 GMS. WE FIND THAT THIS CLAIM OF THE ASSESSEE IS ALSO CORRECT AND WE DIRECT THE ASSESSING OFFICER TO GRANT THE ASSESSEE THE REQUIRED RELIEF AS PER THE SAID CBDT CIRCULAR. IN THE RESULT, APPEAL FILED BY THE ASSESSEE STANDS PARTLY ALLOWED. ORDER PRONOUNCED ON 15/07/2020 UNDER RULE 34(4) OF ITAT RULE. SD/- (SHAMIM YAHYA) FG / ACCOUNTANT MEMBER 4 ITA NO.4995/MUM/2018 MOHANLAL HARIDAS PURWAT ASSESSMENT YEAR-2013-14 MUMBAI; F DATED : SR.PS:-JAISY VARGHESE <= >#= / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. '# / THE RESPONDENT 3. 7K ( ) / THE CIT(A) 4. 7K / CIT CONCERNED 5. J9LM'J;J8JN , JN , 7 / DR, ITAT, MUMBAI 6. MOPQ / GUARD FILE / BY ORDER, / (DY./ASSTT.REGISTRAR) , / ITAT, MUMBAI.