Brief of the case:
- The ITAT Mumbai in the case of M/s Parle Bottling Pvt. Ltd. held that the mismatch in description of jewellery as recorded vis a vis as found by valuer cannot be in its own a sole basis for treating mismatched jewellery as unexplained particularly when minor difference in carat weight.
- The description changes due to conversion or remaking of jewellery as it is very common and merely because the assessee fails to produce bills for remaking cannot be taken as basis for treating the jewellery as unexplained.
Facts of the case:
- A search action u/s 132 of the I.T. Act was carried out in the case of Acme Group Companies and related persons. The assessee being a partner in various firms engaged in business of builder and developer. During the course of the search operation, total jewellery valued at Rs.1,73,30,641/- was found from the premises of the assessee, out of which jewellery valued at Rs.36,93,026/- was seized.
- During the course of the assessment proceedings, the AO asked the assessee to show cause why Jewellery to the extent which has not been reflected in the return of income should not be treated as unexplained and added to the income of the assessee.
- After hearing the explanations made by the assessee AO found that the jewellery valuing Rs.21,58,524/- had remained unexplained and accordingly he added the said amount into the income of the assessee u/s 69A of the Act. Aggrieved by the addition made by the AO, the assessee preferred appeal before the Ld. CIT(A).
- CIT(A) also upheld additions in respect of jewellery which were not matching with the description made in the approved valuers’ reports. Aggrieved by the order of CIT (A) , assessee is in further appeal before the tribunal.
Contention of the Assessee:
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