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2023 (7) TMI 25 - ITAT CHENNAIExcess jewellery found during the course of search - Jewellery belonging to family member (i.e sone and wife) or not? - person to whom said jewellery belongs - in whose hands said additions can be made for excess jewellery found during the course of search? - HELD THAT:- If a person is major and having known source of income and also filing income tax returns, then the assets including jewellery if any belongs to said person needs to be assessed in the hands of the person, who filed return of income even though jewellery found during the course of search is in a common premises. In this case, admittedly jewellery belongs to the son of the appellant was found in his bedroom, but not in the appellant’s bedroom. Similarly, jewellery belongs to the wife of the assessee found in the locker belongs to her. Therefore, excess jewellery found in the name of son of the appellant and wife of the assessee cannot be assessed in the hands of the assessee. Assessing Officer directed to delete additions made towards excess gold jewellery, diamond jewellery and silver articles found in the possession of son and wife. Additions towards remaining Jewellery - HELD THAT:- When the assessee has explained source for purchase of new gold jewellery and diamond jewellery and such source is available to explain the shortage or excess gold jewellery and diamond jewellery found during the course of search, the AO ought to have allowed telescopic benefit towards excess jewellery. CIT(A), without appreciating relevant facts simply sustained additions made by the AO. - AO directed to delete additions made towards excess gold jewellery and diamond jewellery found during the course of search and assessed in the hands of the assessee. Appeal filed by the assessee is allowed.
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