Addition of gold jewellery not sustained in absence of expert valuer’s report

Sudha Aggarwal Vs DCIT (ITAT Chandigarh)

Enhancing the quantity of gold by the weight of stones and diamonds is not logical. It was neither valued nor any Expert Valuer’s report was available on record. Addition unsustainable.

Facts-

A search & seizure operation u/s 132(1) was carried out on the business and residential premises of M/s S.K. Jewellers Group of Cases which included the assessee who is shown to be the proprietor of M/s S.K. Jewellers. The subject matter of dispute pertains to the jewellery found at the residence of the assessee. AO held that considering the Indian customs and traditions, jewellery to the extent of 800 grams was being allowed. The remaining was held to be unexplained and the addition of Rs.11,84,000 was made u/s 69A of the Income Tax Act.

Being aggrieved, the assessee preferred an appeal before CIT(A). CIT(A) uphold the addition. Being aggrieved, the assessee preferred appeal before Tribunal.

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