Amith Kumar Bethala Vs DCIT (ITAT Bangalore)
There is no dispute with regard to the fact that the family of the assessee is engaged in jewellery business. Hence it is inconceivable that the family members could not have possessed any jewellery. The quantity of 500 grams, 250 grams and 100 grams mentioned in the CBDT instruction is not the upper limit for giving credit. Hence, as contended by the Ld A.R, a reasonable estimate should have been made considering the family status of the assessee. In any case, the Ld CIT(A) has given credit of 850 grams on the basis of CBDT instruction in respect of family members of the assessee only. When the assessee, his parents and brother are living in joint family, in our view, the credit should be given for all the members of the joint family.
CBDT is also of the express opinion that the said jewellery cannot be seized, it should normally mean that any jewellery, found in possession of a married lady to the extent of 500 gms., 250 gms. per unmarried lady and 100 gms. per male member of the family will also not be questioned about its source and acquisition.
we are of the view that the Ld CIT(A) should have given credit for all the family members (including parents and brother’s family) as per the CBDT instructions. Accordingly, we direct the AO to give credit for the parents and family members of assessee’s brother also. In case, any jewellery still remains, the AO may consider giving further credit on the basis of family status of the assessee. With these directions, we modify the order passed by Ld CIT(A) on this issue and restore the same to the file of the AO to follow the discussions made supra.
FULL TEXT OF THE ITAT JUDGEMENT
The appeal filed by the assessee is directed against the order dated 13-04-2018 passed by Ld CIT(A)-11, Bangalore and it relates to the assessment year 2013-14.
2. The grounds numbered as 1, 2, 7 to 11 are general in nature. At the time of hearing, the Ld A.R did not press ground no.6. The remaining ground relates to the following issues:-
(a) Addition of Rs.43,08,000/- relating to 1500 grams of bullion found during the course of search.
(b) Addition of Rs.69,91,181/- relating to 2668.39 grams of jewellery found during the course of search.
(c) Addition of Rs.38,19,960/- relating to 2308 grams relating to undisclosed investment in jewellery sustained by Ld CIT(A).
3. The facts relating to the above said issues are discussed in brief. The revenue carried out search and seizure operations u/s 132 of the Act in the hands of the assessee on 08-12-2013. During the course of search, the gold ornaments weighing 7442.30 grams was found, which included bullion of 1500 grams. After considering the explanations given by the assessee, the AO assessed value of following jewellery/bullion as unexplained investment in the hands of the assessee:-
