Case Law Details
Kiran Bala Gupta Vs DCIT (ITAT Hyderabad)
During the course of scrutiny assessment proceedings, it was observed by the learned AO that the assessee has declared long term capital gains of Rs.31,29,215/- towards sale of jewellery and claimed deduction u/s 54F of the Act against investment made in construction of house. Assessee was asked to show proof for the purchase of jewellery, whereas she had replied that the said jewellery was received from her mother on her 10th wedding anniversary in 1998. She also furnished invoices from M/s. Manoj Jewellery, Secunderabad for purchase of jewellery. Consequently, summon was issued to M/s. Manoj Jewellers and the partner of the firm appeared. However, he could not confirm the sale transaction and also denied knowledge about the signatures in the invoices. Further the assessee had not filed her wealth tax return to substantiate possession of gold jewellery. It was further observed from the bank account of the assessee that there was a credit entry of Rs.31,21,215/- on 02.02.2012 and on the very same day, the money was advanced to the company owned by her husband. Therefore, the learned AO argued that the sale of jewellery is a colourable devise to convert the unexplained money into accounted money. Accordingly, he treated the amount of Rs.31,29,215/- as ‘unexplained money’ in the hands of the assessee invoking the provisions of section 69A of the Act.
Before us, the learned AR could not produce any materials to prove the genuineness of the transaction other than reiterating the submissions made before the Ld. Revenue Authorities. It is apparent from the admission of the seller of jewellery that there was no sale transaction with the assessee. The assessee had also not declared the jewellery before the Revenue earlier by filing wealth tax return. Therefore, we do not find it necessary to interfere with the order of Revenue authorities on this issue. Hence, the ground No.1 raised by the assessee is devoid of merits.
FULL TEXT OF THE ORDER OF ITAT HYDERABAD
This appeal is filed by the assessee against the order of learned Commissioner of Income Tax (Appeals) – 6, Hyderabad dt.20.10.2016 in Appeal No.0110/2015-16/CIT(A)-6/16-17 passed u/s 143(3) of the Income Tax Act, 1961 (hereinafter referred as “the Act”).
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