Mandeep Khurana Vs ACIT (ITAT Delhi)
ITAT Delhi held that in absence of original certificate, benefit of jewellery and ornaments declared in VDIS Scheme 1997 is granted based on affidavit and valuation report of the jewellery declared under VDIS.
Facts- During search and seizure operation, the locker nos.17, 132 & 194 of the assessee were searched and amount of jewellery which was valued at Rs.1,96,44,084/- was found. Certain part of the jewellery found from the locker were declared by the assessee under VDIS, 1997 to the extent of Rs.8,66,943/-. In support of the same, assessee has not filed any valuation report or description of jewellery declared under VDIS.
After considering the submissions of the assessee, AO rejected the plea of the assessee, and after giving the standard allowance, sustained the additions made from the jewelleries found from locker as unexplained u/s 69 of the Act. The excess jewellery was valued at Rs.1,32,05,035/-.
CIT(A) sustained additions made by the AO u/s 69 read with section 115BBE of the Act on account of unexplained jewellery. Being aggrieved, the present appeal is filed.
Conclusion- With regard to claim of jewellery declared under VDIS 1997, we observed that assessee has declared jewelleries valued at Rs.8.66,943/-and paid the due tax and relevant payment of tax was also enclosed by the assessee. In our considered view, the assessee also filed an affidavit and also valuation report of the jewellery declared under VDIS, we are inclined to allow the claim of the assessee and direct the AO to convert the value of Rs.8.66,943/- declared under VDIS @ gold prevailing on 31.12.1997. For example, in our view, it was approximately Rs.473/- per gm. Therefore, assessee held gold worth of Rs.8,66,943/- which is divided by Rs.473/- per gm. and should be allowed equivalent grams i.e. 1830 grams, accordingly, the quantity of 1830 grams be reduced from the additions. Accordingly, the relevant credit be allowed.
