The ACIT, Central Circle-1(1), Ahmedabad V. Shri Rakesh Ramniklal Sheth, Ahmedabad

ITA 642/AHD/2012

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 60422 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-05-2012
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2009-2010
• Appeal Filed On: 15-03-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL

Judgement Text

ITA NO.642 /AHD/2012 A.YR. 2009- 10 1 IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, AHMEDABAD (BEFORE SHRI D.K. TYAGI, JM & SHRI ANIL CHATURVEDI A.M.) I.T.A. NO. 64 2/AHD/2012. (ASSESSMENT YEAR: 2009-10) ASSISTANT COMMISSIONER OF INCOME TAX, CENT. CIRCLE 1(1), 3 RD FLOOR, AAYAKAR BHAVAN, ASHRAM ROAD, AHMEDABAD. (APPELLANT) VS. SHRI RAKESH RAMNIKLAL SHETH, 16 ASHWAMEGH BUNGALOWS, 132 FT. RING ROAD, SATELLITE, AHMEDABAD-380 015. (RESPONDENT) PAN: AFGPS 4063 Q BY REVENUE : SHRI VINOD TANWANI, SR. D. R. BY ASSESSEE : NONE ( )/ ORDER DATE OF HEARING : 9-5-2012 DATE OF PRONOUNCEMENT : 25-5-2012 PER: SHRI ANIL CHATURVEDI, ACCOUNTANT MEMBER. THIS APPEAL IS FILED BY THE REVENUE AGAINST THE OR DER OF LD. CIT (A)-I, AHMEDABAD DATED 6-1-2012 FOR THE ASSESSMENT YEAR 20 09-10. 2. THE ONLY EFFECTIVE GROUND TAKEN BY THE REVENUE I S AS UNDER:- 1. THE LD. CIT (A) HAS ERRED IN LAW AND ON FACTS I N DELETING THE ADDITION OF RS.12,17,556/- OUT OF TOTAL ADDITION OF RS.14,38,044/- MADE ON ACCOUNT OF UNEXPLAINED JEWELLERY U/S.69A OF THE ACT. ITA NO.642 /AHD/2012 A.YR. 2009- 10 2 3. BRIEF FACT OF THE CASE IS THAT THE ASSESSEE IS E NGAGED IN THE BUSINESS OF SHARE TRADING AS WELL AS DEVELOPER AND ORGANIZAT ION OF RESIDENTIAL PLOT SCHEMES. SEARCH PROCEEDINGS U/S.132 OF THE I.T. ACT WAS CARRIED OUT ON 22- 4-2008. CONSEQUENTLY NOTICE U/S.153A WAS ISSUED AND THE ASSESSEE FILED HIS RETURN OF INCOME ON 11-6-2009 DECLARING TOTAL I NCOME OF RS.4,06,130. THE A.O. COMPUTED TOTAL INCOME AT RS.18,44,170/- AF TER MAKING ADDITION OF RS.14,38,044/- ON ACCOUNT OF VALUE OF UNEXPLAINED I NVESTMENT IN JEWELLERY THAT WAS FOUND DURING THE SEARCH PROCEEDING AT THE RESIDENCE AND BANK LOCKERS OF THE ASSESSEE AND HIS FAMILY MEMBERS. 4. BEFORE THE CIT (A), IT WAS SUBMITTED BY THE ASSE SSEE THAT THERE ARE SIX MEMBERS IN THE FAMILY CONSISTING OF THE ASSESSE E, HIS WIFE, MOTHER, FATHER AND 2 SONS. IT WAS SUBMITTED THAT THE GOLD O RNAMENTS AND JEWELLERY FOUND DURING THE SEARCH PROCEEDINGS BELONGED TO THE VARIOUS MEMBERS OF THE FAMILY. IN RESPECT OF THE SOURCE OF RECEIPT OF THE GOLD ORNAMENTS IT WAS EXPLAINED THAT THE SAME WERE RECEIVED BY THE FAMILY MEMBERS IN THE PAST ON VARIOUS SOCIAL AND RELIGIOUS OCCASIONS. IT WAS F URTHER CONTENDED BEFORE THE CIT (A) THAT CONSIDERING THE WEIGHT OF GOLD ORN AMENTS AND JEWELLERY, LOOKING TO THE SIZE OF THE FAMILY STATUS AND CUSTOM S JEWELLERY, FOUND SHOULD BE TREATED AS EXPLAINED AND NO ADDITION SHOULD BE M ADE. THE ASSESSEE ALSO PLACED RELIANCE ON CBDT CIRCULAR DATED 11-5-19 94 WHEREIN IT HAS BEEN EMPHASIZED THAT 500 GMS. OF GOLD JEWELLERY AND ORNAMENTS FOR A MARRIED LADY, 200 GMS OF GOLD JEWELLERY AND ORNAME NTS PER ADULT MEMBERS AND MINOR CHILDREN SHOULD NOT BE SEIZED. IN THE ASS ESSEES CASE, FOLLOWING THE GUIDELINES, THE TOTAL JEWELLERY AFTER CONSIDERI NG THE ASSESSEE AND HIS FAMILY, WHICH COULD BE CONSIDERED AS EXPLAINED IS 1 600 GMS. SINCE THE WEIGHT OF GOLD ORNAMENTS AND JEWELLERY FOUND DURING THE COURSE OF SEARCH ITA NO.642 /AHD/2012 A.YR. 2009- 10 3 PROCEEDINGS WAS OF 1256.950 GMS. AND 17.08 CTS., WH ICH WAS WELL WITHIN THE LIMITS PRESCRIBED IN THE BOARDS GUIDELINES, NO ADDITION WAS REQUIRED TO BE MADE CONSIDERING THE SAME TO BE UNEXPLAINED. 5. CIT (A) AGREED WITH THE CONTENTIONS OF THE ASSES SEE AND RELYING ON THE BOARDS INSTRUCTIONS DELETED THE ADDITION TO TH E EXTENT OF RS.12,17,556/- AND UPHELD THE ADDITION TO THE EXTENT OF RS.2,20,48 8/-. 6. AGGRIEVED BY THE DECISION OF CIT (A), THE REVENU E IS NOW IN APPEAL BEFORE US. BEFORE US THE LD. D.R. WAS FAIR ENOUGH T O CONCEDE THAT THE ISSUE IN PRESENT APPEAL IS COVERED AGAINST THE REVENUE, I N VIEW OF THE DECISION OF JURISDICTIONAL HIGH COURT IN THE CASE OF CIT VS. RA TANLAL VYAPARILAL JAIN(2010) 235 CTR 568(GUJ.). 7. WE HAVE HEARD THE LD. D.R. AND PERUSED THE MATER IAL ON RECORD. IN THE CASE OF CIT VS. RATANLAL VAYAPARILAL JAIN (2010 ) 235 CTR 568 (GUJ.) HONBLE GUJARAT HIGH COURT HAS CONCLUDED AS UNDER:- INSTRUCTION NO.1916, DT. 11-5-1994 WHICH LAYS DOWN GUIDELINES FOR SEIZURE OF JEWELLERY IN THE COURSE OF SEARCH TAKES INTO ACCOUNT THE QUANTITY OF JEWELLERY WHICH WOULD GENERALLY BE HELD BY THE FAMILY MEMBERS OF AN ASSESSEE AND, THEREFORE, UNLESS ANYTH ING CONTRARY IS SHOWN, IT CAN BE SAFELY PRESUMED THAT THE SOURCE TO THE EXTENT OF THE JEWELLERY STATED IN THE CIRCULAR STANDS EXPLAINED. 8. WE ARE OF THE CONSIDERED OPINION THAT AS THE F ACTS OF THE PRESENT CASE ARE IDENTICAL TO THAT DECIDED BY HONBLE GUJARAT HI GH COURT, RESPECTFULLY ITA NO.642 /AHD/2012 A.YR. 2009- 10 4 FOLLOWING THE DECISION OF THE JURISDICTIONAL HIGH C OURT IN THE CASE OF CIT VS. RATANLAL VYAPARILAL JAIN (SUPRA), WE UPHOLD THE DEC ISION OF CIT (A). 8. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSE D. ORDER PRONOUNCED IN OPEN COURT ON 25 - 5 - 2012. SD/- SD/- (D. K. TYAGI) (ANIL CHATURVEDI) JUDICIAL MEMBER ACC OUNTANT MEMBER AHMEDABAD. S.A.PATKI. COPY OF THE ORDER FORWARDED TO: - 1. THE APPELLANT. 2. THE RESPONDENT. 3. THE CIT (APPEALS)-I AHMEDABAD. 4. THE CIT CONCERNED. 5. THE DR., ITAT, AHMEDABAD. 6. GUARD FILE. BY ORDER DEPUTY/ASSTT.REGISTRAR ITAT,AHMEDABAD. ITA NO.642 /AHD/2012 A.YR. 2009- 10 5 1.DATE OF DICTATION 9 - 5 -2012 2.DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE TH E DICTATING 22 / 5 / 2012 MEMBER.OTHER MEMBER. 3.DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR. P.S./P.S 24 - 5 -2012. 4.DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER FOR PRONOUNCEMENT 25 - 5 -2012 5.DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR .P.S./P.S 25 - 5 -2012 6.DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 28 - 5 -2012. 7.DATE ON WHICH THE FILE GOES TO THE HEAD CLERK . 8.THE DATE ON WHICH THE FILE GOES TO THE ASSTT. REG ISTRAR FOR SIGNATURE ON THE ORDER 9.DATE OF DESPATCH OF THE ORDER..