SHRI NITESH MUNJE, Indore v. THE ACIT 2(1), Indore

ITA 65/IND/2015 | 2011-2012
Pronouncement Date: 29-09-2016 | Result: Partly Allowed

Appeal Details

RSA Number 6522714 RSA 2015
Assessee PAN ADTPN0657Q
Bench Indore
Appeal Number ITA 65/IND/2015
Duration Of Justice 1 year(s) 8 month(s) 2 day(s)
Appellant SHRI NITESH MUNJE, Indore
Respondent THE ACIT 2(1), Indore
Appeal Type Income Tax Appeal
Pronouncement Date 29-09-2016
Appeal Filed By Assessee
Order Result Partly Allowed
Bench Allotted DB
Tribunal Order Date 29-09-2016
Assessment Year 2011-2012
Appeal Filed On 27-01-2015
Judgment Text
NITESH MUNJE ITA NO. 65/IND/2015 1 IN THE INCOME TAX APPELLATE TRIBUNAL INDORE BENCH INDORE .. ..!' #$ # !% BEFORE SHRI D.T. GARASIA JUDICIAL MEMBER AND SHRI O.P. MEENA ACCOUNTANT MEMBER ..& ./ I.T.A. NO. 65/IND/2015 ' ' ()' / ASSESSMENT YEAR: 2011-12 NITESH MUNJE INDORE PAN ADTPN 0657Q :: * / APPELLANT VS ACIT 2(1) INDORE :: -* / RESPONDENT * . # /APPELLANT BY SHRI C.P. RAWKA -* . # / RESPONDENT BY SHRI LALCHAND / '(0 . $ DATE OF HEARING 21.9.2016 1234) . $ DATE OF PRONOUNCEMENT 29.09.2016 / O R D E R PER SHRI D.T. GARASIA JM THIS APPEAL HAS BEEN FILED BY THE ASSESSEE AGAINST THE ORDER OF THE LEARNED CIT(A)-I INDORE DATED 14.10.2 014. NITESH MUNJE ITA NO. 65/IND/2015 2 2. AT THE TIME OF HEARING THE ONLY GROUND PRESSED BY THE LEARNED COUNSEL FOR THE ASSESSEE IS GROUND NO. 2 TO T HE EFFECT THAT THE LEARNED CIT(A) ERRED IN LAW AND FACTS O F THE CASE AND MADE ADDITION OF RS.200000/- TOWARDS TOLD SIL VER JEWELLERY FOUND RELEASED AT THE TIME OF SEARCH. THE ADDITION MADE BY THE ASSESSING OFFICER AND CONFIRMED BY THE CI T(A) IS TOTALLY WRONG AND ILLEGAL ON THE FACTS OF THE CASE. 3. BRIEFLY STATED THE FACTS OF THE CASE ARE THAT DURING THE COURSE OF SEARCH JEWELLERY WAS FOUND AND THE ASSESSIN G OFFICER MADE THE ADDITION OF RS.12 77 409/- TOWARDS GO LD AND SILVER ORNAMENTS FOUND DURING SEARCH. THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT WHILE MAKING T HIS ADDITION THE ASSESSING OFFICER HAS IGNORED THE STATEM ENT RECORDED DURING THE SEARCH REGARDING SOURCE OF SUCH JEWELLERY AND ALSO IGNORED THE BOARD CIRCULAR. DURING THE COURSE OF SEARCH GOLD ORNAMENTS WEIGHING 639.50 GMS VALUED AT RS.1069801/- AND SILVER ARTICLES OF 6.325 GMS NITESH MUNJE ITA NO. 65/IND/2015 3 VALUED AT RS. 2 07 248/- WERE FOUND FROM THE RESIDENCE OF THE ASSESSEE AT 27/1 SILVER PARK DR. ROSHAN SINGH BHA NDARI MARG INDORE. THE GOLD JEWELLERY PERTAINED TO THREE LADIE S THE ASSESSEES MOTHER HIS WIFE AND BROTHERS WIFE WHO ACQUIRED TH E SAME DURING MARRIAGE WHICH REPRESENT STRIDHAN. CONSIDERING THE FACTS OF THE CASE THE LEARNED CIT(A) REDUCED THE ADDITION TO RS . 2 00 000/- BY OBSERVING AS UNDER :- 7. GROUND NO. 4 OF APPEAL IS AGAINST AD DITION OF RS. 12 77 049/- TOWARDS GOLD AND SILVER ORNAMENTS F OUND AND RELEASED DURING SEARCH. IT IS STATED BY APPELLA NT THAT A.O. WHILE MAKING SUCH ADDITION IGNORED THE VARIOUS STATEMENTS RECORDED DURING SEARCH ON EXPLANATION REGARDING SOURCE OF SUCH JEWELLERY AND ALSO IGNORED BOARD CIRCULAR. DURING SEARCH GOLD ORNAMENTS WEIGHING 639 .50 GMS VALUED AT RS.10 69 801/- AND SILVER ARTICLES OF 6.325 KG VALUED AT RS.2 07 248/- WERE FOUND. THE GOLD JEW ELLERY WAS EXPLAINED AS PERTAINING TO 3 LADIES APPELLANT S MOTHER HIS WIFE AND HIS BROTHERS WIFE MAINLY ACQ UIRED DURING THEIR MARRIAGE AND REPRESENTS THEIR STRIDHAN . NITESH MUNJE ITA NO. 65/IND/2015 4 HOWEVER APPELLANT ADMITTED IN HIS STATEMENT THAT F EW NEW GOLD ORNAMENTS WERE PURCHASED AND SILVER COINS WERE PURCHASED. CONSIDERING THE STATEMENT OF APPELLANT G IVEN DURING SEARCH AS ALSO THE FACT THAT HOLDING OF SUCH JEWELLERY IN HANDS OF THREE LADIES IS NOT MUCH AND IT IS CUSTOMARY TO RECEIVE GIFT OF SILVER ARTICLES ON VAR IOUS OCCASIONS I HOLD THAT CONFIRMING AN ADDITION OF RS .1.50 LACS FOR GOLD JEWELLERY AND RS.50 000/- FOR SILVER COINS/ARTICLES I.E. A TOTAL OF RS.2.00 LACS WILL ME ET THE END OF JUSTICE. AS A RESULT OUT OF ADDITION OF RS.12 77 049/- ONLY AN AMOUNT OF RS.2 00 000/- IS CONFIRMED AND APPELLANT GETS A RELIEF OF RS.10 77 049/-. GROUND N O. 4 OF APPEAL IS PARTLY ALLOWED. 4. DURING THE COURSE OF HEARING THE LEARNED COUNSE L FOR THE ASSESSEE SUBMITTED THAT AS PER CIRCULAR NO. 1916 DA TED 11.05.1994 ISSUED BY THE CENTRAL BOARD OF DIRECT TAXES POSSES SION OF 500 GMS OF JEWELLERY BY EACH MARRIED LADY IS PERMISSIBLE. G OLD JEWELLERY OF 639.50 GMS AND SILVER OF 6.325 GMS WERE FOUND WHICH CANNOT BE TREATED TO BE UNEXPLAINED AS PER THE ABOVE CIRCULAR . NITESH MUNJE ITA NO. 65/IND/2015 5 5. ON THE OTHER HAND THE LEARNED DR SUPPORTED THE ORDER OF THE LEARNED CIT(A). 6. WE HAVE HEARD BOTH THE SIDES. WE FIND THAT THE A BOVE CIRCULAR REQUIRES NON-SEIZURE OF JEWELLERY TO THE EXTENT OF 500 GMS FOR MARRIED LADY 250 GMS FOR UNMARRIED LADY AND 100 GR MS FOR MALE TO BE EXTENDED TO ASSESSMENT PROCEEDINGS AND THE SAME TO BE TREATED AS EXPLAINED INCOME. SINCE THERE ARE THREE LADY MEM BERS IN THE FAMILY AS PER THE ABOVE CBDT CIRCULAR POSSESSION OF SEIZED JEWELLERY CANNOT BE QUESTIONED. WE THEREFORE DELE TE THE ADDITION OF RS.2 00 000/- SUSTAINED BY THE LEARNED CIT(A). 5. IN THE RESULT THE APPEAL OF THE ASSESSEE STANDS PARTLY ALLOWED. THE ORDER HAS BEEN PRONOUNCED IN OPEN COURT ON 2 9 SEPTEMBER 2016. SD/- SD/- (. . ) ( ..) (O.P.MEENA) (D.T.GARASIA) ACCOUNTANT MEMBER J UDICIAL MEMBER / DATED : 29 SEPTEMBER 2016. DN/