Jayashri Shrikant Deshmukh, Aurangabad V. Assistant Commissioner of Income Tax, Central Circle - 1, Aurangabad, Aurangabad

ITA 776/PUN/2022

AI Insights

The case involves an appeal by Jayashri Shrikant Deshmukh against the order of the Commissioner of Income Tax (Appeals)-12, Pune, which confirmed the Assessing Officer's decision treating 107.48 grams of gold and jewellery as unexplained and taxable under section 69A of the Income Tax Act, 1961. The appellant argued that the jewellery was acquired from agricultural income of a larger Hindu Undivided Family (HUF) and was received upon partition. The Tribunal, after considering the arguments and evidence, found the appellant's explanation plausible and reversed the lower authorities' decision.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 137167 (ITAT-PUNE)
• Duration Of Justice: 6 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-05-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 15-05-2023
• Assessment Year: 2019-2020
• Appeal Filed On: 20-10-2022
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Search and seizure
• Section: 132; 69A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH “A”, PUNE BEFORE SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER AND SHRI S. S. VISWANETHRA RAVI, JUDICIAL MEMBER आयकर अपील सं. / ITA No.776/PUN/2022 िनधाᭅरण वषᭅ / Assessment Year : 2019-20 Jayashri Shrikant Deshmukh, CSMSS Ayurved Mahavidyalay, Kanchanwadi, Paithan Road, Aurangabad- 431005. PAN : ADUPD1171C Vs. ACIT, Central Circle-1, Aurangabad. Appellant Respondent आदेश / ORDER PER INTURI RAMA RAO, AM: This is an appeal filed by the assessee directed against the order of ld. Commissioner of Income Tax (Appeals)-12, Pune [‘the CIT(A)’] dated 30.08.2022 for the assessment year 2019-20. 2. Briefly, the facts of the case are that the appellant is an individual deriving income under the head “salary”. He is working in CSMSS Ayurved Mahavidyalaya, Aurangabad. The Return of Income for the assessment year 2019-20 was filed on 29.07.2019 Assessee by : Adjournment application rejected Revenue by : Shri Ramnath P. Murkunde Date of hearing : 16.05.2023 Date of pronouncement : 17.05.2023 ITA No.776/PUN/2022 2 disclosing total income of Rs.11,11,330/-. The search and seizure operations u/s 132 of the Income Tax Act, 1961 (‘the Act’) were conducted in the business and residential premises of the appellant on 21.08.2018. During the course of such search and seizure operations, a Locker bearing Locker No.51, SBI, Kanchanwadi, Aurangabad and Locker No.335, IDBI Bank, Samarthnagar, Aurangabad was found in the names of the assessee and her husband, Shri Shrikant Gunwantrao Deshmukh respectively and in the said Locker, Gold and Jewellery of 957.48 gms was found. Out of said gold, jewellery of 957.48 gms, the gold, jewellery of 850 gms was treated as explained by the Assessing Officer in terms of the CBDT Instruction 1961 dated 11.05.1994 and the value of gold, jewellery of 107.48 gms was treated as unexplained rejecting the explanation of the appellant that this gold, jewellery belongs to his HUF which is received on partition of Bigger HUF. It was further explained that the said gold, jewellery was acquired out of the agricultural income on the land belonging to Bigger HUF. 3. Being aggrieved by the above order of assessment, an appeal was filed before the ld. CIT(A), who vide impugned order confirmed the action of the Assessing Officer. 4. Being aggrieved, the appellant is in appeal before us in the present appeal. ITA No.776/PUN/2022 3 5. When the appeal was called on, an adjournment petition was moved by the appellant on the ground that the appellant’s counsel could not attend the hearing due to his health issue. Since the matter was adjourned on several occasions earlier, we are not inclined to grant any further adjournment. Accordingly, the adjournment petition moved by the assessee is rejected. Therefore, we proceed to decide the issue in appeal after hearing the ld. CIT- DR. 6. We heard the ld. CIT-DR and perused the material on record. The provisions of section 69A provides that if an assessee is found to be the owner of any money, bullion, jewellery or other valuable article, which is not recorded in the books of account, and the assessee offers no explanation about the nature and source of acquisition of the money, bullion, jewellery or other valuable article, or the explanation offered by him is not satisfactory in the opinion of the Assessing Officer, then such money and the value of the bullion, jewellery or other valuable article may be deemed to be the income of the assessee. In the present case, it was found that the appellant was in possession of the gold, jewellery of 957.48 gms and out of which gold, jewellery of 850 gms was treated as explained by the Assessing Officer in terms of the CBDT Instruction (supra). As regards to the balance of jewellery of 107.48 ITA No.776/PUN/2022 4 gms, the assessee had offered an explanation that this jewellery was acquired out of the agricultural income generated by the Bigger HUF on the lands held by it. This explanation cannot be termed as “not plausible explanation” and, therefore, we are of the considered opinion that the Assessing Officer was not justified in treating the gold, jewellery of 107.48 gms as unexplained and brought to tax. In the circumstances, we direct the Assessing Officer to delete the addition of Rs.3,26,740/- made u/s 69A of the Act. 7. In the result, the appeal filed by the assessee stands allowed. Order pronounced on this 17 th day of May, 2023. Sd/- Sd/- (S. S. VISWANETHRA RAVI) (INTURI RAMA RAO) JUDICIAL MEMBER ACCOUNTANT MEMBER पुणे / Pune; ᳰदनांक / Dated : 17 th May, 2023. Sujeet आदेश कᳱ ᮧितिलिप अᮕेिषत / Copy of the Order forwarded to : 1. अपीलाथᱮ / The Appellant. 2. ᮧ᭜यथᱮ / The Respondent. 3. The CIT(A)-12, Pune. 4. The Pr. CIT (Central), Nagpur. 5. िवभागीय ᮧितिनिध, आयकर अपीलीय अिधकरण, “A” बᱶच, पुणे / DR, ITAT, “A” Bench, Pune. 6. गाडᭅ फ़ाइल / Guard File. आदेशानुसार / BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण, पुणे / ITAT, Pune.