TMI Blog2014 (4) TMI 155X X X X Extracts X X X X X X X X Extracts X X X X ..... oceeds of artifacts, under the head “income from other sources”. Sale of jewellery – Held that:- There is no rebuttle of the findings of the AO and the CIT(A) that the assessee could not produce any corroborative evidence to show that the assessee has initiated the same jewellery from her late father, as shown in the valuation report dated 7th June 1972 - The onus is upon the assessee to show nexus of the inheritance of the jewellery and the sale of jewellery in this year - The explanation offered by the assessee, has not been found to be satisfactory and is not corroborated by any credible evidence on record. Once the assessee has sold the ornaments in this year, the onus was on the assessee to prove that it has been acquired either ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Rs. 1,94,927 are taxable as capital gains u/s 45 and not as income from other sources. 3. Facts in brief:- The assessee is an individual having income under the head income from business , income from other sources , and income from capital gain . With regard to the addition on account of artifacts for Rs. 1,21,500, the assessee s case had been that she had inherited certain decorative artifacts, like decorative vases, display plates, etc., from her father who had died in the year 1974. The assessee, before the Assessing Officer, submitted a valuation report of inventory and furniture as on 8th January 1975, wherein the said artifacts were part of household items. In this year, the assessee had sold these artifacts to one Mr. Phiroze ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eated the sale proceeds of jewellery of sums aggregating to Rs. 1,94,927 as income from other sources . 5. Even the learned Commissioner (Appeals) confirmed the said addition on the ground that no evidence in support of the claim could be furnished by the assessee either before the Assessing Officer or before him. Accordingly, the sale proceeds of the artifacts and the jewellery were confirmed as income from other sources . 6. Before us, the learned Counsel for the assessee, on the issue of sale of artifacts submitted that it is not in the nature of a capital asset as these were only decorative vases and display plates and not any kind of capital assets as defined in section 2(14)(ii). He submitted that before the Assessing Officer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it has been sold in this year, then the same should be taxed under the head capital assets and benefit of indexation should be given. 8. The learned Departmental Representative, on the other hand, strongly relying upon the orders of the Assessing Officer and the Commissioner (Appeals), submitted that the onus was on the assessee to show that the artifacts and jewellery have been inherited by her from her late father and such an onus can only be discharged by some credible evidence and not by way of explanation or old valuation report. There is no mention of bequeathing of any jewellery in the Will of her late father, therefore, it cannot be presumed that the assessee had received the jewellery from her father, without any further corr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the Will does not mention any bequeathing of jewellery to the assessee. There is no rebuttle of the findings of the Assessing Officer and the learned CIT(A) that the assessee could not produce any corroborative evidence to show that the assessee has, in fact, initiated the same jewellery from her late father, as shown in the valuation report dated 7th June 1972. The onus is upon the assessee to show nexus of the inheritance of the jewellery and the sale of jewellery in this year. Otherwise, the statement provides a deeming presumption under section 69A, against the assessee. Once the assessee is unable to give proper explanation about the nature and source of the acquisition of the jewellery, then it is presumed to be unexplained money of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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