Ajay Data Vs ACIT (ITAT Jaipur)
Jewellery and silver articles belonging to family cannot be added as unexplained jewellery
ITAT Jaipur held that once the jewellery and silver articles are considered as belonging to the family as a whole, there does not remain any unexplained gold jewellery. Hence, addition towards unexplained gold jewellery is liable to be deleted.
Facts- A search and seizure action u/s. 132 of the Income Tax Act, 1961 was carried out by the Income Tax Department on the members/concerns of Data Group, Alwar on 14.10.2015 of which the assessee is one of the members. During the course of search, stock-in-trade, documents, books of account and/or loose papers were found and seized from the premises of the members of the Data Group of which one such member happens to be the assessee. Consequently, the case was selected for manual scrutiny, being search case, as per prevalent CBDT guidelines.
AO completed assessment by making addition towards unaccounted cash Rs. 11,76,400/- and undisclosed jewellery Rs. 21,02,279/-.
CIT(A) restricted the addition to Rs. 4,28,830/- as against the addition of Rs. 11,76,400/- made by the AO on account of cash found seized during the search and enhanced the addition by Rs. 17,33,800/- over and above the addition made by the AO in respect of jewellery found and seized during the search.
