Shri Mohanlal Haridas Purwat Vs DCIT (ITAT Mumbai)
The issue under consideration is whether the addition for unexplained Gold made by combining the value of Gold and Silver is justified in law?
ITAT states that the Assessing Officer has started by considering the valuation of gold at the quantity of 831.74 at Rs.28,83,301 and has finally added a sum of Rs.562,400 as unexplained gold. However, it is the fact that actually the valuation of gold seized was Rs. 24,21,206. In the valuation the silver found was Rs 4,62,095. Hence the inclusion of silver valued at Rs 4,62,095 into gold ornaments and consequent addition to this extent is not sustainable. Accordingly ITAT direct the addition of Rs 4,62,095 as not justified, and the same is directed to be deleted.
FULL TEXT OF THE ITAT JUDGEMENT
1. This appeal by the assessee is directed against order of learned CIT appeal dated 06/06/2018 and pertains to assessment year 2013-14.
2. The issue raised is that learned CIT appeals erred in sustaining the disallowance of rupees 562,400 on account of unexplained gold jewellery.
3. Brief facts of the case are that pursuant to search operations at the assessee’s premises certain jewellery were detected by the Department, as per the contention of Ld. Counsel of the assessee .
