Sheela Sureh Sheth, Dahod v. The ACIT.,Cent.Circle=1,, Baroda

ITA 665/AHD/2010 | 2007-2008
Pronouncement Date: 10-02-2012 | Result: Allowed

Appeal Details

RSA Number 66520514 RSA 2010
Assessee PAN AHZPS6466J
Bench Ahmedabad
Appeal Number ITA 665/AHD/2010
Duration Of Justice 1 year(s) 11 month(s) 8 day(s)
Appellant Sheela Sureh Sheth, Dahod
Respondent The ACIT.,Cent.Circle=1,, Baroda
Appeal Type Income Tax Appeal
Pronouncement Date 10-02-2012
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted A
Tribunal Order Date 10-02-2012
Date Of Final Hearing 11-01-2012
Next Hearing Date 11-01-2012
Assessment Year 2007-2008
Appeal Filed On 02-03-2010
Judgment Text
ITA NO.665/AHD/2010 ASSESSMENT YEAR 2007-08 1 IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH AHM EDABAD (BEFORE SHRI G.C. GUPTA VICE PRESIDENTAND SHRI A . L. GEHLOT) I.T.A. NO. 66 5/AHD/2010 (ASSESSMENT YEAR: 2007-2008) SHEELA SURESH SHETH SHANTI SADAN SOCIETY STATION ROAD DAHOD (GUJARAT) (APPELLANT) VS. ASSISTANT COMMISSIONER OF INCOME TAX CENTRAL CIRCLE-1 AAYAKAR BHAVAN NEAR RACE COURSE CIRCLE BARODA. (RESPONDENT) PAN: AHZPS 6466J ON BEHALF OF THE ASSESSEE : MR. SAKAR SHARMA. ON BEHALF OF THE REVENUE : MR. G.S. SOURYAWANSHI S R. D.R. ( )/ ORDER DATE OF HEARING : 11-1-2012 DATE OF PRONOUNCEMENT : 10-2-2012 PER: SHRI A. L. GEHLOT. THIS APPEAL IS FILED BY THE ASSESSEE AGAINST THE O RDER OF LD. CIT (A)-IV AHMEDABAD IN APPEAL NO. CIT(A)-IV/356-B/CC-1/08-09 DATED 24-12-2009 FOR THE ASSESSMENT YEAR 2007-08. 2. THE SOLE GROUND RAISED IN THE APPEAL READS AS UN DER:- ITA NO.665/AHD/2010 ASSESSMENT YEAR 2007-08 2 THE LD. CIT (A) ERRED ON FACTS AND IN LAW IN CONFI RMING ADDITION OF RS.8 25 019/- ON ACCOUNT OF ALLEGED UNEXPLAINED JEW ELLERY FOUND IN THE COURSE OF SEARCH BOTH ON ACCOUNT OF NON APPRECIATIO N OF DOCUMENTARY EVIDENCES AS WELL AS ON ACCOUNT OF ARITHMETIC ERROR S. 3. THE BRIEF FACTS OF THE CASE ARE THAT A SEARCH ACTIO N U/S.132 WAS CARRIED ON 19- 9-2006.DURING THE COURSE OF SEARCH SOME JEWELLERY W AS FOUND IN LOCKERS DETAILED AS UNDER:- PARTICULARS WEIGHT VALUE. LOCKER NO.45 437.800 GMS RS. 3 61 173/- LOCKER NO.318 1453.200 GMS. RS.11 97 186/- RESIDENCE 264 GMS. GOLD 500 GMS. SILVER RS. 2 58 800/- RS. 8 500/- TOTAL RS.18 25 659/- 4. THE ASSESSEE EXPLAINED BEFORE THE AO GOLD JEWELL ERY FOUND FROM LOCKER NO.45 BELONGED TO SMT. RAKSHABEN R. SHAH. REMAINING GOLD JEWELLERY FOUND FROM LOCKER NO.318 AND RESIDENCE WERE BELONGING TO FAMIL Y OF THE ASSESSEE AND HER HUSBAND ASSESSEES SON AND DAUGHTER-IN-LAW. THE AO CONSIDERED THE JEWELLERY IN WEALTH TAX RETURN IN EARLIER YEARS AND NOTICED THAT JEWELLERY OF 713 GMS FOUND SHOWN IN THE RETURN INCLUDED IN STRIDHAN. THE AO A LLOWED THE BENEFIT OF CBDT CIRCULAR TO THE EXTENT OF 500 GMS AND HELD THAT JEW ELLERY TO THE EXTENT OF 213 GMS STAND EXPLAINED. THE AO ALSO ALLOWED THE BENEFIT OF CBDT CIRCULAR TO THE EXTENT OF 100 GMS OF JEWELLERY FOR ASSESSEES HUSBAND. THE AO SATISFIED TO THE EXTENT OF JEWELLERY OF 813 GMS (713 + 100 GMS) AND CALCULATED VALUE OF THE JEWELLERY BY APPLYING THE RATE OF RS.800/- PER GM OF WHICH CALC ULATION COMES TO RS.6 50 400/-. THE AO SATISFIED THAT THE JEWELLERY TO THE EXTENT O F RS.6 50 400/- HAS BEEN ITA NO.665/AHD/2010 ASSESSMENT YEAR 2007-08 3 EXPLAINED BY THE ASSESSEE. THE AO MADE THE ADDITION OF THE REMAINING AMOUNT RS.11 75 259/-. THE CIT (A) ACCEPTED THE ASSESSEES CONTENTION REGARDING GOLD JEWELLERY BELONG TO SMT. RAKSHABEN ACCEPTING THE AS SESSEES CONTENTION AND EVIDENCE FILED BY THE ASSESSEE IN THE FORM OF AFFID AVIT AND OTHER MATERIAL. THE CIT (A) ACCORDINGLY ALLOWED THE RELIEF OF RS.3 50 240/- BY ACEPTING THE JEWELLERY OF 437.08 GMS OF SMT. RAKSHABEN AND CONFIRMED THE BALA NCE ADDITION OF RS.8 25 090/-. THE LD. AR SUBMITTED THAT JEWELLERY OF 500 GMS BELONGING TO DAUGHTER IN LAW OF THE ASSESSEE WITH AN AFFIDAVIT D ATED 5-10-2008 OF NIMITA U. SHETH DAUGHTER-IN-LAW OF THE ASSESSEE WAS FILED BEF ORE THE AO. HE FURTHER SUBMITTED THAT AT THE TIME OF OPENING OF LOCKER THE SAID JEWELLERY BELONGING TO HER A TAG WAS ALSO FOUND ALONG WITH JEWELLERY. HE FURTHER SUBMITTED SINCE SHE WAS STAYING ABROAD AND IN HER ABSENCE LOCKERS WERE NOT OPERATED BY THE ASSESSEE AT ALL. THE LD. AR SUBMITTED THAT THE CIT (A) WITHOUT APPRE CIATING THE FACT DID NOT ALLOW THE CREDIT OF JEWELLERY BELONGING TO DAUGHTER-IN-LA W I.E. SMT. NIMITA UTPAL SHETH. THE LD. AR FURTHER SUBMITTED THAT THE JEWELLERY REC EIVED BY THE ASSESSEE ON A FAMILY SETTLEMENT ON DEATH OF ASSESSEES MOTHER-IN- LAW SMT. HASUMITA G. SHETH CREDIT WAS NOT ALLOWED OF THAT JEWELLERY. THE LD. A R SUBMITTED THAT THE MOTHER-IN- LAW OF THE ASSESSEE IS SEPARATELY ASSESSED TO TAX A ND DECLARED SUBSTANTIAL QUANTITY OF GOLD ORNAMENTS UNDER VDIS 1997. THE LD. AR SUBMITTE D THAT CONSIDERING THE FAMILY STATUS OF ASSESSEE OWNING SILVER UTENSILS OF 500 GMS CAN BE SAID TO BE EXCESSIVE OR UNREASONABLE. THE LD. AR SUBMITTED THA T ON IDENTICAL SET OF FACTS IN THE CASE OF SISTER OF ASSESSEE SMT. KALPANABEN I. S HETH THE ORNAMENTS RECEIVED BY WAY OF INHERITANCE FROM MOTHER-IN-LAW THE RELATED ADDITION WAS DELETED. THE LD. AR SUBMITTED THAT THE ASSESSEE FULLY EXPLAINED THE SOURCE OF JEWELLERY INCLUDING 770 GMS JEWELLERY RECEIVED ON FAMILY SETTLEMENT ON DEATH OF MOTHER-IN-LAW SMT. HASUMATI SHETH/ RASIKLAL SAKARLAL DESAI & OTHERS 34 5 GMS RECEIVED BY SHRI SURESH G. SHETH 250 GMS RECEIVED BY ASSESSEE FROM HASUMATI G. SHETH AND ABOUT ITA NO.665/AHD/2010 ASSESSMENT YEAR 2007-08 4 170 GMS RECEIVED BY ASSESSEE FROM HER FATHER SHRI R ASIKLAL S. DESAI. THE LD. AR DREW OUR ATTENTION TO A COPY OF WILL OF HASUMATIB EN G. SHETH WHICH IS IN GUJARATI HAS BEEN PLACED AT PAGE23 OF THE PAPER BOOK. THE LD . AR WHILE SUMMING UP HIS ARGUMENT SUBMITTED THAT THE ASSESSEE HAS SUBMITTED SUFFICIENT MATERIAL IN EXPLAINING THE JEWELLERY FOUND AT THE TIME OF SEARC H. THE LD. D.R. RELIED UPON THE ORDER OF THE A.O. 5. WE HEARD THE LEARNED REPRESENTATIVES OF THE [PAR TIES AND PERUSED THE RECORDS. WEE FIND THAT THE TOTAL JEWELLERY OF 2421 GMS FOUND AT THE TIME OF SEARCH OUT OF WHICH THE AO HIMSELF ACCEPTED 813 GMS AS EXP LAINED JEWELLERY. 438 GMS JEWELLERY HAS BEEN ACCEPTED BY THE CIT (A) AS EXPLA INED JEWELLERY IN THE NAME OF SMT. RAKSHABEN. THE DISPUT BEFORE US IS IN RESPECT OF JEWELLERY OF 500 GMS BELONGING TO DAUGHTER-IN-LAW AND 770 GMS ON FAMILY SETTLEMENT AND OTHERS. WE NOTICE THAT WHEN THE FACT OF THE JEWELLERY FOUND IN THE CASE OF SMT. RAKSHABEN AND IN CASE OF DAUGHTER-IN-LAW SMT. NIMITA SHETH WERE I DENTIFIED AND AT THE TIME OF OPENING OF LOCKER SOME TAG WAS FOUND ALONG WITH JEW ELLERY SUPPORTED BY AFFIDAVITS THEREFORE ON SAME SET OF FACTS IT CANN OT BE SAID THAT ONE IS EXPLAINED AS JEWELLERY AND ANOTHER IS NOT EXPLAINED. THEREFORE THE ADDITION OF JEWELLERY BELONGING TO DAUGHTER-IN-LAW IS NOT SUSTAINABLE. AS REGARDS THE JEWELLERY OF 770 GMS ON FAMILY SETTLEMENT BY WILL AND OTHERS IN IND IA SUCH A FAMILY SETTLEMENT AND PARTITION OF GOLD ORNAMENTS IS THE USUAL THINGS FOR WHICH IT IS NOT NECESSARY THAT THERE MUST BE SOME WRITTEN DOCUMENT OR EVIDENCE. SU CH THINGS ARE GOING ON THE BASIS OF CUSTOM AND PREVAILING SOCIAL CIRCUMSTANCES AND RULES AND REGULATIONS OF THE SOCIETY. THAT DEPENDS UPON THE FACTS OF EACH CA SE. THE EXPLANATION OF THE ASSESSEE SUMMARILY CANNOT BE REJECTED KEEPING IN VI EW THE ABOVE PREVAILING SYSTEM OF THE SOCIETY. WE THEREFORE DO NOT FIND AN Y JUSTIFICATION IN SUSTAINING ITA NO.665/AHD/2010 ASSESSMENT YEAR 2007-08 5 ADDITION SUSTAINED BY THE CIT (A). THUS WE DELETE THE ADDITION OF RS.8 25 019/- SUSTAINED BY THE CIT (A). 6. IN THE RESULT THE APPEAL OF THE ASSESSEE IS ALL OWED. ORDER PRONOUNCED IN OPEN COURT ON 10 - 2 - 2012. SD/- SD/- (G. C. GUPTA) (A. L.GEHLOT) VICE PRESIDENT ACCOUNTANT MEMBER AHMEDABAD. S.A.PATKI. COPY OF THE ORDER FORWARDED TO: - 1. THE APPELLANT. 2. THE RESPONDENT. 3. THE CIT (APPEALS)-IV AHMEDABAD. 4. THE CIT CONCERNED. 5. THE DR. ITAT AHMEDABAD. 6. GUARD FILE. BY ORDER DEPUTY/ASSTT.REGISTRAR ITAT AHMEDABAD. ITA NO.665/AHD/2010 ASSESSMENT YEAR 2007-08 6 1.DATE OF DICTATION 11 - 1 -2012 2.DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE TH E DICTATING 12 / 1 / 2012 MEMBER.OTHER MEMBER. 3.DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR. P.S./P.S 2 - 2 -2012. 4.DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER FOR PRONOUNCEMENT 10 - 2 -2012 5.DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR .P.S./P.S 9 - 2 -2012 6.DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 1 0 - 2 -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..