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2021 (3) TMI 878 - AT - Income TaxAssessment u/s 153A - addition made was on account of excess jewellery found in the residence of the assessee during the search - HELD THAT:- The entire addition in respect of excess jewellery were added exclusively in the hands of the assessee without giving any cogent reason as to why the addition has been made only in the hands of the assessee when it was established on the file that jewellery found from the premises belongs to all family members of the assessee. It is an admitted fact that the assessee had only salary income and income from interest in his hands. As per the records, the assessee is a CEO of M/s Integral Urban Co-operative Bank Ltd. and is getting salary. He also had income from interest on his past savings. The assessee is not getting any remuneration of being an honorary Secretary of St. Wilfred Educational Society. Thus, he does not have any ostensible source of income which could generate unaccounted income. As found from the records that no incriminating document was found during search of his residence to show or demonstrate that the assessee had unaccounted income of any sort from any source. No corroborative evidence has been placed on record by the revenue to show that the said excess jewellery found during search exclusively belonged to, or was purchased out of unaccounted income of the assessee - jewellery is something which primarily belongs to the ladies of the House. Moreover, in the present case, once it is accepted that these jewellery items belong to other members of the family and the assesse has given specific details regarding such items identified to other family members, therefore, in our view, the entire addition could not have been made in the hands of assessee alone and it should have been added on pro-rata basis in the hands of all the family members and not the assessee alone. It has already been brought on record that all the family members are income tax payee and are filing their respective income tax returns. Therefore, the addition so made in the hands of assessee needs to be reduced on this score. Hence, we direct the A.O. to make addition in respect of unexplained jewellery on pro-rata basis and restrict the additions in the hands of assessee of his share alone. Appeal of the assessee is allowed partly.
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