9911796707
TMI Blog2013 (5) TMI 442X X X X Extracts X X X X X X X X Extracts X X X X ..... IT Act, 1961, being unexplained investment in paintings, watches and other valuables, without appreciating the facts that the assessee failed to discharge its onus to prove the transaction about the acquisition of said movable assets." 3. Briefly stated relevant facts that are lead to the addition of Rs. 18.75 lacs u/s 69B of the Act are required to be extracted here. The addition of Rs. 18.75 lacs has three segments and segment-wise details are given as under: 3.1. the first segment of the addition relates to Rs. 3.75 lacs on account of unexplained investment in five paintings. There was a search action u/s 132 of the Act on the Oberoi Group cases and the same resulted in inventoraising of 5 paintings. As per the assessee, these are acco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... account of 7 watches and Rs. 10 lacs on account of electronic goods totaling to Rs. 18.75 lacs u/s 69B of the Act. Aggrieved with the above estimations based on the surmises, assessee filed an appeal before the CIT (A). 4. During the proceedings before the first appellate authority, after examining the replies and evidences furnished by the assessee, CIT (A) concluded that on account of all these three additions by stating that the figures arrived at by the AO are purely guess work and baseless estimations which cannot be sustained in law. The contents of para 4.2.9 relates to addition on account of five paintings; para 4.3.5 relates to addition on account of seven watches and para 4.4.7 on account of electronic goods are relevant and the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The estimate is made purely on guess work and has no basis whatsoever. Therefore, this addition cannot be sustained. Conclusions of the CIT (A) on house-hold items: 4.4.7. I have considered the submissions in this regard. Just like paintings and watches, the order valuables have also been valued on estimate basis and there is no systematic attempt by the Ld AO to demolish the argument of the appellant that these valuable are purchased out of cash withdrawals. When the appellant has claimed that his personal cash withdrawals for the year itself is Rs. 25,10,956/- , there can be no justification for making an addition in respect of household items, watches and amateur paintings. The additions suffer from the dual defect of resorting to uns ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ounsel for the assessee vehemently argued stating that this is a case of search action u/s 132 of the Act on the premises, assets, bank accounts and books of accounts of the assessee, which were thoroughly examined by the Revenue during the search action by the Revenue Authorities. Revenue, did not notice any incriminating material to demonstrate that the said paintings, watches and electronic goods are undervalued or acquired or outside the books of accounts. In such case, onus is on the Assessing Officer to demonstrate that the goods are unaccounted and unexplainable with the known sources of income. Referring to the sources of income to explain the said acquisition of the movable assets, Ld Counsel brought our attention to the tabulated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... intings, branded watches and branded electronic goods. He simply picked up figure from the air without any basis. He should have employed his ITI at least to gather the market value from any branded shops before resorting to adhocism. Further, he should have availed services of his ITI. We cannot appreciate this kind of absurd assessment of value of impugned items and therefore, this kind of valuation is absolutely uncalled for and unwarranted in this kind of cases. There was a search in this group of cases on 19.7.2007. Therefore, the assessments based on the baseless estimations should have been avoided. Therefore, we find no reason to disagree with the views taken by the CIT (A). The conclusions of the CIT (A) were already imported in th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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