Laxmi Nanda Kishore Velegatla Vs DCIT (ITAT Chennai)
Addition towards unaccounted gold and silver jewellery set aside based on CBDT instruction dated 11.05.1994: ITAT Chennai
ITAT Chennai held that addition under section 69 towards unaccounted gold and silver jewellery set aside relying on CBDT instruction no. 1916 dated 11.05.1994. Accordingly, appeal of the assessee allowed.
Facts- The assessee is a Chartered Accountant and working as General Manager, Finance and Accounts in M/s Varficus Ventures P Ltd. As part of search in the group belonging to Ram Prasad Reddy, the assessee’s residential premises was also searched on 27.11.2020. The unaccounted gold and silver jewellery amounting to Rs.12,14,570/- were found and seized from the premises of the assessee.
During the course of assessment proceedings, the assessee produced list of jewellery acquired in the recent past along with purchase bills. The assessee also contested the proposed addition in show cause notice on the basis of CBDT Instruction No. 1916 dated 11.05.1994. However, AO was not convinced with the submissions of the assessee and concluded the assessment by making an addition of Rs.12,14,570/- u/s. 69 of the Act as unexplained investment by passing an order u/s. 143(3) of the Act dated 24.09.2022
CIT(A) confirmed 50% of addition as unexplained. Being aggrieved, assessee has preferred the present appeal.
