TMI Blog2013 (5) TMI 442X X X X Extracts X X X X X X X X Extracts X X X X ..... items is not appreciable and therefore, this kind of valuation is absolutely uncalled for and unwarranted in this kind of cases. Regarding the other issue of availability of explainable sources perusuing the cash withdrawals of self and other family members for the year are in the range of Rs. 35.13 lacs. The expenses / investment in question does not only belong to the self but also to the entire family members of the assessee, whose withdrawals for the past ten years were of Rs. 68.08 lacs, which is an undisputed fact. It is also not the case of the AO that the assessee has unaccounted sources of income. Thus the onus is on the Revenue to prove that the assessee has unaccounted sources of income and the withdrawals of Rs. 68.08 lacs we ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has a value of Rs. 5,000/-. AO rejected the same and all these five paintings are valued on estimation basis at Rs. 3.75 lacs. Matter was not referred to DVO and no evidence was found during the search to indicate the under valuation of all the five paintings in question. Thus, the AO made the above addition u/s 69B of the Act. 3.2. The second segment of the addition relates to the ad-hoc addition of Rs. 5 lacs against the assessee's value of Rs. 1.13 lacs on account of branded watches inventorised during the search action. The Revenue inventorised 7 watches. These watches were said to be accounted and explainable by the withdrawals made by the assessee over the period of 10 years. AO rejected the assessee's figures and prevented to make ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onclusions of the CIT (A) on paintings: "4.2.9. I have considered the basis of addition vis- -vis appellant's stand thereon. It is very apparent from para 7.1 of the assessment order that the basis of estimate is not the stature of the painting or the art work involved. The estimate is made purely on guess and has no basis whatsoever. The appellant's submission clearly brings out the fact that the paintings are not made by any favour artist having investment value. Thereafter, unless the paintings are referred for some kind of valuation, an arbitrary value cannot be substituted for the value shown by the assessee. Therefore, this addition cannot be sustained law. Conclusions of the CIT (A) on Branded Watches: 4.3.5. I have considered ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... evidence in respect of the values as also lack of evidence in respect of the link between the withdrawals and purchases. The onus to prove the investment from accounted sources is primarily on assessee. However, such an onus shifts to the Department once the withdrawals exceeding the amount in question have been established. Therefore, considering the entire gamut of circumstances and facts, it is held that the addition is based purely on estimate basis. The value of household items is stated to be Rs. 10,00,000/- by the AO whereas the same is estimated at Rs. 5,00,000/- by the appellant and there is no scientific basis for either. The estimate of the paintings value is merely a wild guess. Without prejudice, there is more than sufficient w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rder reflecting the withdrawals position of the assessee as well as the other members of the family and mentioned that the assessee's withdrawals for the past ten years works out to Rs. 68.08 lacs, which is adequate enough to explain the said estimated amount of Rs. 18.75 lacs. Further, Ld Counsel mentioned that the ad-hoc additions are not to be encouraged in the search and seizure assessments of this kind as the search assessments have to be done only based on the seized and incriminated material found and gathered during the search action. In this regard, Ld Counsel relied on the Special Bench decision in the case of All Cargo Logistics Ltd. vs. DCIT in support of his argument. 7. We have heard both the parties and perused the orders o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of guess work is always expected in matters of best judgment assessments; but the entire additions can never be made only based on the weird surmises and guess work. 7.2. Regarding the other issue of availability of explainable sources to account for addition of Rs. 18.75 lacs, we have perused the cash withdrawals of self and other family members, which is tabulated in para 4.4.3 of the impugned order. The cash withdrawals of the self and family members of the assessee for the year are in the range of Rs. 35.13 lacs. The expenses / investment in question does not only belong to the self but also to the entire family members of the assessee, whose withdrawals for the past ten years were of Rs. 68.08 lacs, which is an undisputed fact. It i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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