DCIT, Chandigarh V. Smt. Geeta Bansal, Chandigarh

ITA 805/CHANDI/2013

• Counselvise Citation: 80521514 RSA 2013
• Duration Of Justice: 2 year(s) 4 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-12-2015
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 12-10-2015
• Assessment Year: 2010-2011
• Appeal Filed On: 01-08-2013
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: MRS RAJINDER KAUR
• Assessee Lawyers: SUDHIR SEHGAL
• Keywords: Unexplained investment
• Section: 132; 15; 153A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH, CHANDIGARH BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMBER AND MS. RANO JAIN, ACCOUNTANT MEMBER ITA NO.805 /CHD/2013 (ASSESSMENT YEAR : 2010-11) THE D.C.I.T., VS. SMT.GEETA BANSAL, CENTRAL CIRCLE-1, #2048, SECTOR 15C, CHANDIGARH. CHANDIGARH. PAN: AAPPR5315C AND ITA NO.806 /CHD/2013 (ASSESSMENT YEAR : 2010-11) THE D.C.I.T., VS. SMT.SARIKA BANSAL, CENTRAL CIRCLE-1, #2048, SECTOR 15C, CHANDIGARH. CHANDIGARH. PAN: AEPPB3877H (APPELLANT) (RESPONDENT) APPELLANT BY : MRS.RAJINDER KAUR, DR RESPONDENT BY : SHRI SUDHIR SEHGAL DATE OF HEARING : 12.10.2015 DATE OF PRONOUNCEMENT : 22 .12.2015 O R D E R PER RANO JAIN, A.M . : BOTH THESE APPEALS FILED BY THE REVENUE, RELATING TO DIFFERENT ASSESSES, ARE DIRECTED AGAINS T THE SEPARATE ORDERS OF LEARNED COMMISSIONER OF INCOM E TAX (APPEALS)(CENTRAL), GURGAON EACH DATED 21.5.201 3 FOR ASSESSMENT YEAR 2010-11. 2 ITA NO.805/CHD/2013 : (SMT.GEETA BANSAL) 2. BRIEFLY, THE FACTS OF THE CASE ARE THAT A SEARC H AND SEIZURE OPERATION WAS CONDUCTED IN THE CASE OF M/S BANSAL GROUP AS ON 7.7.2009. THE ASSESSEE WAS ONE OF THE PERSONS COVERED IN THE SEARCH. THE TOTAL JEWEL LERY AMOUNTING TO RS.49,70,312/- WAS FOUND FROM THE RESIDENTIAL PREMISES, HOUSE NO.2048, SECTOR 15, CHANDIGARH. OUT OF THIS, AS PER THE ASSESSING OFFI CER, JEWELLERY AMOUNTING TO RS.22,55,681/- (RS.9,35,200/ - + RS.13,20,481/-) WAS FOUND BELONGING TO SMT.GEETA BA NSAL AND SHRI ANIL BANSAL. DURING THE ASSESSMENT PROCEEDINGS, THE ASSESSEE SUBMITTED THAT THE JEWELL ERY WAS DETAILED IN PANCHNAMA OF SHRI J.C.BANSAL AND OT HER FAMILY MEMBERS AS ITEMS BELONGING TO JOINT FAMILY O F SHRI J.C.BANSAL. IT WAS FURTHER SUBMITTED THAT SINCE TH E JEWELLERY WAS SEIZED AND PANCHNAMA PREPARED IN THE JOINT NAMES OF FAMILY MEMBERS OF SHRI J.C.BANSAL, ACCORDI NGLY, THE JEWELLERY WAS CONSIDERED IN THE HANDS OF SHRI J.C.BANSAL, WHO HAD ALREADY FILED HIS PETITION BEFO RE THE HON'BLE SETTLEMENT COMMISSION. IT WAS ALSO STATED THAT THE JEWELLERY VALUED AS BOARD CIRCULAR WAS CONSIDER ED AS EXPLAINED AND SHRI J.C.BANSAL HAD DISCLOSED AN ADDI TIONAL AMOUNT OF RS.5 LACS. IT WAS STATED THAT CONSIDERIN G THE NUMBER OF FAMILY MEMBERS THE JEWELLERY TOTALING TO 2350 GMS WAS EXPLAINED AS UNDER : I) SH. J.C. BANSAL 100 GMS II) SMT. KANTA BANSAL W/O OF SH. J.C. BANSAL 500 GMS III) SH. ANIL BANSAL 100 GMS 3 IV) SMT. GEETA BANSAL W/O SH. ANIL BANSAL 500 GMS V) SH. SUNIL BANSAL 100 GMS VI) SMT. SAIRKA BANSAL W/O SH. SUNIL BANSAL 500 GMS VII) SAMEER BANSAL AND SAURABH BANSAL SONS OF SH. ANIL B ANSAL 200 GMS VIII) DIVYA BANSAL & RADHIKA BANSAL D/O SH. SUNIL BANSAL 350 GMS. TOTAL 2350 GMS 3. HOWEVER, REJECTING THE CONTENTION OF THE ASSESSEE AND ALSO OBSERVING THAT THE INSTRUCTION IS ONLY FOR SEIZURE ON JEWELLERY, THE ASSESSING OFFICER ASS ESSED THE JEWELLERY FOUND FROM HOUSE NO.2048, SECTOR 15 A ND JEWELLERY FOUND IN THE LOCKER NO.513 WITH PNB, SECT OR 16, CHANDIGARH IN THE HANDS OF THE ASSESSEE, SMT.GEETA BANSAL. 4. BEFORE THE LEARNED CIT (APPEALS), IT WAS AGAIN REITERATED THAT ALL THE MEMBERS OF THE FAMILY WERE LIVING JOINTLY AND THE INVENTORY WAS PREPARED BY THE DEPAR TMENT AS JOINT FAMILY OF SHRI J.C.BANSAL. THE JEWELLER Y WAS FOUND DURING THE COURSE OF SEARCH AS LYING IN ONE R OOM OR THE OTHER. THE JEWELLERY WAS BEING USED BY LADIES JOINTLY AND THE JEWELLERY ITEMS WERE NOT EARMARKED. FURTHE R, IT WAS STATED THAT SHRI J.C.BANSAL HAD FILED PETITION BEFORE THE HON'BLE SETTLEMENT COMMISSION WHERE AT PARA 15, IT HAS BEEN CLARIFIED THAT OUT OF THE TOTAL JEWELLERY WEIGHING 3337.14 GMS. FOUND DURING THE COURSE OF SEARCH, JEW ELLERY WEIGHING 2350 GMS HAS TO BE CONSIDERED AS EXPLAINED IN TERMS OF BOARDS CIRCULAR. FURTHER, IT WAS EXPLAIN ED THAT AT THE TIME OF SEARCH, SMT.SUNITA JINDAL W/O SHRI L ALIT JINDAL, WHO IS THE DAUGHTER OF SHRI J.C.BANSAL WAS PRESENT AT THE RESIDENCE OF SHRI J.C.BANSAL. AS PE R STATEMENT OF SMT.SUNITA JINDAL, THE JEWELLERY WEIGH ING 4 1120 GMS BELONGED TO HER. IN THIS WAY, IT WAS STAT ED THAT WHOLE OF THE JEWELLERY STANDS EXPLAINED. IT WAS AL SO BROUGHT TO THE KNOWLEDGE OF THE LEARNED CIT (APPEAL S) THAT THE ASSESSING OFFICER IN OTHER CASES HAVE ACCEPTED THE GENUINENESS OF JEWELLERY FOUND DURING THE COURSE OF SEARCH ON THE BASIS OF BOARD CIRCULAR AND NO ADDITI ON HAS BEEN MADE. A COPY OF THE ORDER OF SETTLEMENT COMMI SSION UNDER SECTION 245D(4) WAS ALSO FILED, WHEREBY THE S AID CONTENTION OF THE ASSESSEE HAD BEEN ACCEPTED. 5. THE LEARNED CIT (APPEALS) AFTER CONSIDERING THE SUBMISSION OF THE ASSESSEE, PARTICULARLY REFERRING TO STATEMENT OF FACTS FILED BEFORE THE SETTLEMENT COMM ISSION IN THE CASE OF MAA SARASWATI EDUCATIONAL & WELFARE TRUST (AOP) AND ALSO THE ORDER OF THE SETTLEMENT COMMISSI ON UNDER SECTION 245D(4) DATED 10.5.2013, HELD THAT TH E ISSUE HAVING BEEN EXPLAINED BY THE HON'BLE SETTLEME NT COMMISSION, THERE IS NO NEED TO MAKE SEPARATE ADDIT ION IN THE HANDS OF THE ASSESSEE. 6. AGGRIEVED BY THIS ORDER OF THE LEARNED CIT (APPEALS), THE REVENUE HAS COME IN APPEAL BEFORE US , RAISING THE FOLLOWING GROUNDS OF APPEAL : 1. WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE THE LD. CIT(A) HAS ERRED IN LAW BY DELETING THE ADDITION OF RS.22,55,681/- MADE BY THE AO ON ACCOUNT OF UNEXPLAINED INVESTMENT IN JEWELLERY FOUND DURING TH E COURSE OF SEARCH U/S 132 OF THE I.T. ACT, 1961.' 2. THAT THE APPELLANT CRAVES TO ADD, DELETE OR MODI FY ANY OF THE GROUNDS OF APPEAL BEFORE OR AT THE TIME OF HEARING. 5 7. THE LEARNED D.R. RELIED UPON THE ORDER OF THE ASSESSING OFFICER AND FURTHER STATED THAT SINCE THE BANK LOCKER FROM WHERE THE JEWELLERY WAS FOUND IS IN THE NAME OF THE ASSESSEE, THE ADDITION HAS TO BE MADE IN THE HANDS OF THE ASSESSEE. 8. THE LEARNED COUNSEL FOR THE ASSESSEE REITERATED THE SUBMISSIONS MADE BEFORE THE LOWER AUTHORITIES. FIRST LIMB OF HIS ARGUMENT WAS THAT SINCE ALL THE MEMBERS OF FAMILY LIVING TOGETHER IN A JOINT FAMILY, THE CONCE SSION REGARDING EACH FAMILY MEMBER OUT OF TOTAL JEWELLERY FOUND HAS TO BE GIVEN AS PER THE BOARD CIRCULAR. IN THI S REGARD, RELIANCE WAS PLACED ON A LATEST ORDER OF THE CHANDI GARH BENCH OF THE I.T.A.T. IN THE CASE OF SATISH GOYAL & ORS. VS. DCIT, ITA NOS.588 TO 590/CHD/2015, DATED 28.9.2 015. THE SECOND LIMB OF HIS ARGUMENT WAS THAT THE ISSUE OF JEWELLERY STANDS SETTLED BY THE ORDER OF THE HON'BL E SETTLEMENT COMMISSION IN THE CASE OF SHRI J.C.BANS AL, WHEREIN ALL THE FACTS OF JEWELLERY FOUND FROM COMMO N RESIDENCE HAD BEEN GIVEN AT PAPER BOOK PAGE 32 AND 33 AND PAPER BOOK PAGES 38. FURTHER, IN THE ORDER OF THE SETTLEMENT COMMISSION PLACED AT PAPER BOOK PAGE 14, THE HON'BLE COMMISSION HAS GIVEN THE BENEFIT OF SMT.SUN ITA JINDALS JEWELLERY SINCE SHE HAD BEEN STAYING WITH HER PARENTS NAMELY SHRI J.C.BANSAL AND SMT.KANTA BANSAL AND ACCEPTED THE EXPLANATION OF THE ASSESSEE. IN T HIS VIEW, A PRAYER WAS MADE TO CONFIRM THE ACTION OF TH E LEARNED CIT (APPEALS) IN DELETING THE ADDITION. 9. WE HAVE HEARD THE LEARNED REPRESENTATIVES OF 6 BOTH THE PARTIES, PERUSED THE FINDINGS OF THE AUTHO RITIES BELOW AND CONSIDERED THE MATERIAL AVAILABLE ON RECO RD. THE UNDISPUTED FACTS OF THE CASE ARE THAT THE TOTAL JEWELLERY WEIGHING 3337.14 GMS WAS FOUND DURING THE COURSE OF SEARCH. FROM THE COPY OF PANCHNAMA PLACE D ON RECORD, WE SEE THAT THE PANCHNAMA IS IN THE JOINT N AMES OF ALL THE MEMBERS OF THE FAMILY AND INVENTORY OF J EWELLERY FOUND IS ALSO JOINTLY IN THE NAMES OF ALL THE MEMBE RS OF THE FAMILY. IN THIS REGARD, RELIANCE ON THE ORDER OF I.T.A.T., CHANDIGARH BENCH IN THE CASE OF SHRI SAT ISH GOYAL (SUPRA) IS NOT OUT OF PLACE, WHEREBY IT HAS B EEN HELD VERY CLEARLY THAT IN A JOINT FAMILY SET-UP, OUT OF THE TOTAL JEWELLERY FOUND DURING THE COURSE OF SEARCH, THE BE NEFIT OF JEWELLERY HELD BY EACH MEMBER OF THE FAMILY AS PER BOARD CIRCULAR IS TO BE ALLOWED. 10. AS REGARDS THE ISSUE BEING SETTLED BY THE HON' BLE SETTLEMENT COMMISSION, WE ARE IN TOTAL AGREEMENT WI TH THE FINDING OF THE LEARNED CIT (APPEALS), WHICH ARE AT PAGE 9 IN PARA 5.1 ONWARDS : 5.1 THE ASSESSEE IN HER SUBMISSIONS, HAS REFERRED TO PARA 15 OF THE STATEMENT OF FACTS (SOF) OF MAA SARASWATI EDUCATIONAL AND WELFARE TRUST (AOP) FILED B EFORE THE HON'BLE SETTLEMENT COMMISSION. A COPY OF THE SAID SOF HAS ALSO BEEN PLACED BEFORE ME. THE RELEVANT PARA NOS. 13, 14 AND 15 ARE REPRODUCED BELOW: 13. DURING THE COURSE OF SEARCH, JEWELLERY WAS ALSO FOUND FROM THE RESIDENTIAL PREMISES OF SHRI J.C. BANSAL AND SHRI LALIT JINDAL AND HIS FAMILY MEMBERS VALUED RS.40,35,112/- WAS FOUND AND OUT OF WHICH, JEWELLER Y OF RS.16,36,733/- WAS SEIZED. HOWEVER, THE JEWELLERY AS PE R BOARD CIRCULAR IS BEING CONSIDERED AS EXPLAINED OF THE 7 JEWELLERY AS PER BOARD CIRCULAR IS AS UNDER FOR THE P URPOSES OF DETERMINING AS TO WHETHER THERE WAS ANY EXCESS J EWELLERY IN THE CASE OF SHRI J.C. BANSAL FMILY:- I) SHRI JAI CHAND BANSAL 100 GMS II) SMT. KANTA BANSAL W/O SH. JAI CHAND BANSAL 500 GMS III) SHRI ANIL BANSAL 100 GMS IV) SMT. GEETA BANSAL W/O SHRI ANIL BANSAL 500 GMS V) SHRI SUNIL BANSAL 100 GMS VI) SMT. SARIKA BANSAL W/O SHRI SUNIL BANSAL 500 GMS VII) SAMEER BANSAL AND SAURABH BANSAL SONS OF SHRI ANIL BANSAL 200 GMS VIII) DIVYA BANSAL AND RADHIKA BANSAL D/O SHRI SUNIL BANSAL 350 GMS TOTAL EXPLAINED JEWELLERY 2350 GMS 14. IT IS PERTINENT TO MENTION HERE THAT BESIDES THA T SMT. SUNITA JINDAL D/O SHRI J.C. BANSAL IS MARRIED TO SHRI LALIT JINDAL AND, THOUGH, RESIDING INDEPENDENTLY, BUT SHR I LALIT JINDAL IS ACTIVELY ASSOCIATED IN THE BUSINESS OF BA NSAL FAMILY AND IS A TRUSTEE IN TWO TRUSTS, WHO ARE RUNNING EDU CATIONAL INSTITUTION AND ALSO ASSOCIATED IN OTHER CONSTRUCTI ON BUSINESS OF THE GROUP AS A WHOLE. 15. IN FACT, SMT. SUNITA JINDAL W/O SH. LALIT JINDA L WAS PRESENT IN THE HOUSE OF HIS FATHER AT THE TIME OF SEARCH AND HA D STATED THAT HER JEWELLERY WAS LYING WITH HER PARENTS AND, IN FACT, THIS STATEMENT IS FURTHER PROVED FROM THE FACT THAT FROM THE RESIDENT OF SMT. SUNITA JINDAL AND HER HUS BAND, NO JEWELLERY WAS FOUND. SMT. SUNITA JINDAL WAS BEING ASSESSED TO WEALTH TAX AND IN HER RETURN FOR ASSTT. YEAR1995-96,SHEHADDECLARED 1120 GMS. OF JEWELLERY AND H ER COMPUTATION OF WEALTH ALONGWITH COPY OF THE WEALTH T AX ASSESSMENT ORDER IS BEING ENCLOSED AT PAGES 116-117 OF THE SOF AND, THUS, THE TOTAL DECLARED JEWELLERY AS PER BOARD 'S CIRCULAR AND AS PER WEALTH TAX RETURN OF SMT. SUNITA JINDAL IS AS UNDER:- I. TOTAL FAMILY JEWELLERY OF SH.J.C.BANSAL 2350 GMS 8 II. JEWELLERY OF SMT.SUNITA JINDAL 1120 GMS. JEWELLERY OF HER HUSBAND AND TWO SONS 300 GMS ---------- 1420 GMS 3770 GMS THE JEWELLERY FOUND DURING THE COURSE OF SEARCH WAS EVEN SLIGHTLY HIGHER AND EXPLAINED JEWELLERY IS 3770 GMS. AS STATED ABOVE AND, THUS, THE TOTAL UNEXPLAINED JEWEL LERY FOR WHICH THE VALUE IS WORKED OUT AT RS. 500000/- AND I S BEING OFFERED IN THE HANDS OF SH. J.C. BANSAL. 5.1.1 IN THE COPY OF SOF OF SHRI JC BANSAL, IT IS STATED IN PARA 10, AS UNDER: 10. THE DETAILS OF CASH AND JEWELLERY AND THEIR EXPLANATIONS OF THE GROUP AS A WHOLE HAS BEEN GIVEN IN THE PETITION OF MAIN SPECIFIED PERSON NAMELY 'MAA SARAS WATI EDUCATIONAL AND SOCIAL WELFARE 'TRUST' AND THOSE FA CTS ARE BEING RELIED UPON HERE ALSO. 5.2 MEANWHILE COPY OF THE ORDER U/S 2450(4} OF THE INCOME TAX ACT 1961 OF THE HON'BLE SETTLEMENT COMMISSION DATED 10.5.2013 WAS FURNISHED BY THE ASSESSEE. ON GOING THROUGH THE SAME, I FIND THAT THE RE IS NO SPECIFIC MENTION NOR COMMENTS/ FINDINGS ON THE PARA 15 OF THE SOF AS REGARDS THE TOTAL JEWELLERY OF 3337.140 GMS FOUND IN THE COURSE OF SEARCH AND ASSESSED IN THE HA NDS OF THE FAMILY MEMBERS. PARA 5.2 OF THE ORDER DETAILS T HE OFFER OF ADDITIONAL INCOME MADE IN SOF AND THE DISCLOSURE MA DE IN THE RETURNS OF INCOME FILED U/S 153A BY SHRI JC BANS AJ. THE DISCLOSURE IN THE RETURN FOR AY 2010-2011 REFLECTS RS. 5 LAKHS AGAINST GOLD ORNAMENTS. HENCE, I HAVE NO REASON NOT T O HOLD THAT THE PETITION AT PARA 15 OF THE SOF OF THE AOP AND PARA 10 OF JC BANSAJ HAVE NOT BEEN CONSIDERED BY THE HON'BLE SETTLEMENT COMMISSION. IN THIS CONNECTION, THE DECISIO N RENDERED BY. THE HON'BLE DELHI HIGH COURT IN THE CASE OF OMAXE LTD (V) ACIT & ANR. (2012) REPORTED IN 82 CCH 2 52 (DEL); 209 TAXMANN 443 (DEL) MAYBE REFERRED, WHICH APPL IES SQUARELY. THUS, RESPECTFULLY ADHERING TO THE ORDER O F THE HON'BLE SETTLEMENT COMMISSION, J AM INCLINED TO HOLD T HAT NO SEPARATE ADDITIONS ON ACCOUNT OF JEWELLERY IS REQUI RED TO BE MADE IN THE HANDS OF THE FAMILY MEMBERS OF SHRI JC B ANSAL. THE ASSESSEE SUCCEEDS IN THIS GROUND OF APPEAL. 9 11. THE STATEMENT OF FACTS OF MAA SARASWATI EDUCATIONAL & WELFARE TRUST (AOP) AND COPY OF ORDER UNDER SECTION 245D(4) ARE PART OF THE PAPER BOOK FI LED BY THE ASSESSEE. ON PERUSAL OF THE SAME, WE DO NOT FI ND ANY INFIRMITY IN THE ORDER OF THE LEARNED CIT (APPEALS) . 12. IN VIEW OF THE ABOVE, THE APPEAL OF THE REVENU E IS DISMISSED. ITA NO.806/CHD/2013 : (SMT.SARIKA BANSAL) 12. THE PRESENT ASSESSEE IS ALSO A PART OF THE SHR I J.C.BANSAL FAMILY. AS THE FACTS OF THIS CASE ARE S IMILAR TO THE FACTS IN THE CASE OF SMT.GEETA BANSAL IN ITA NO.805/CHD/2013 AND THE FINDINGS GIVEN IN ITA NO.805/CHD/2013 SHALL APPLY TO THIS CASE ALSO WITH EQUAL FORCE. 13. IN THE RESULT, BOTH THE APPEALS OF THE ASSESSE S ARE ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 22 ND DAY OF DECEMBER, 2015. SD/ SD/- (BHAVNESH SAINI) (RANO JAIN) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED : 22 ND DECEMBER, 2015 *RATI* COPY TO: THE APPELLANT/THE RESPONDENT/THE CIT(A)/THE CIT/THE DR. ASSISTANT REGISTRAR, ITAT, CHANDIGARH