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2015 (8) TMI 554 - ITAT CHENNAI

2015 (8) TMI 554 - ITAT CHENNAI - TMI - Disallowance of interest availed by the assessee towards housing loan - Held that:- This Tribunal is of the considered opinion that that the assessee has diverted a sum of ₹ 70 lakhs borrowed for the purpose other than construction. Under section 24 of the Income-tax Act, the interest paid by the assessee on the loan borrowed has to be allowed only from the rental income. Since the loan borrowed was diverted for the purpose other than construction, t .....

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en definitely there should be a reference in the lease agreement dated 19.10.2007 between the assessee and RMKV & Sons. In the absence of any reference about the investment of funds by RMKV & Sons and the liability of the assessee to reimburse the same, this Tribunal is of the considered opinion that the claim of the assessee that the donation paid to the temples is only reimbursement of the expenditure is not justified. This Tribunal do not find any infirmity in the order of the CIT(A) on this .....

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ions for them to receive gift from the close relatives. Here again, expecting documentary evidence to establish the receipt of gift is impossible one. Therefore, everything has to be estimated depending upon the facts of each case by taking into account the social status of the family in the locality in which they are living. This Tribunal is of the considered opinion that the assessee might have received gift of 15 kgs of silver articles as streedhan property during her marriage. Similarly, for .....

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is only 13.23 kgs. Accordingly, the orders of the lower authorities are modified and the Assessing Officer is directed to make addition only in respect of 13.23 kgs of silver articles. - Decided partly in favour of assessee.

Addition towards jewellery purchases without invoices - CIT(A) deleted the addition - Held that:- It is not in dispute that the purchase of jewellery has a reference in the bank account maintained by the assessee with ICICI Bank and the payments were made through .....

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be doubted since the status of the family in society would indicate that they are used to wear diamond jewellery. this Tribunal is of the considered opinion that it is not known how the assessee could establish by material evidence to indicate the inheritance of 2.38 carats of diamond from her mother-in-law. This Tribunal is of the considered opinion that in view of the smallness of the value, the CIT(A) has rightly deleted the addition. In fact, the Assessing Officer himself has made addition .....

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and net weight. On a query from the Bench, the ld. Counsel explained that this difference is due to the weight of the stone embedded in the jewellery and impurities. This Tribunal is of the considered opinion that it is common practice in all jewellery shop that stones are valued at the gold rate and in addition to the rate which prevails for the gold. The assessee has also required to pay charges for wastage, making charges besides the applicable taxes. Therefore, this Tribunal is of the consi .....

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rial evidence may not be practically possible. Therefore, this Tribunal is of the considered opinion that by taking into consideration the customary practice which prevails in this part of the country and the social status of the assessee, and the nature of business engaged by the assessee, this Tribunal is of the considered opinion that the assessee would have earned the value of 9.93 carates of diamond jewellery. Therefore, no addition is called for with regard to the value of diamond jeweller .....

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for excluding the difference between the gross and net weight of the jewellery found. Therefore, the claim of the assessee that 97.7 gms of jewellery being the difference between the gross and net weight has to be excluded cannot be accepted. In view of the above, the balance remains to be explained is 200.2 gms. Accordingly, the order of the lower authority is modified and the Assessing Officer is directed to add the value of 200.2 gms of gold jewellery as unexplained investment.- Decided partl .....

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e gross weight and not on the net weight, therefore, the difference between the gross weight and net weight cannot be allowed as deduction while computing the value. After giving deduction of 1000 gms instead of 800 gms as streedhan jewellery to the assessee’s wife, the balance remains to explain is only 204 gms of gold jewellery. Accordingly, the orders of the lower authorities are modified and the Assessing Officer is directed to make addition to the extent of 204 gms of gold jewellery. - Deci .....

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nnot be taken into consideration since the assessee has to pay the price for the gross weight. In view of the above discussion, this Tribunal is of the considered opinion that 61.54 gms of gold jewellery remains to be unexplained. Accordingly, the orders of the lower authorities are modified and the Assessing Officer is directed to make addition of 61.54 gs of gold jewellery as unexplained investment.

Coming to the diamond jewellery, as rightly submitted by the ld. Counsel, it is comm .....

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entire addition towards 38.01 carats of diamond jewellery.- Decided partly in favour of assessee.

Unexplained investment in silver articles - Held that:- It is not in dispute that what was found during the course of search operation are mostly pooja articles like kuthuvilakku, panner fan, camphor stand, kukum bowk, sandal bowl and plates etc besides tumblers. By taking into consideration the status of the assessee’s family in the society and the nature of business, it is not uncommon .....

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rders of the lower authorities are set aside and the Assessing Officer is directed to delete the entire addition of 28.17 kgs of silver articles found during the search operation. - Decided in favour of assessee. - I.T.A.No.234, 320, 237, 238, 239, 240, 318, 598, 319/Mds/2013 - Dated:- 7-8-2015 - SHRI N.R.S. GANESAN AND SHRI CHANDRA POOJARI, JJ. For The Assessee : Shri G. Baskar, Advocate For The Department : Shri S. Das Gupta, JCIT ORDER PER N.R.S.GANESAN, JUDICIAL MEMBER All appeals of the ass .....

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or the assessee submitted that the assessee is a co-owner of the property at 176-F, Trivandurm Road, Vannarapettai, Tirunelveli. The said property was let out to RMKV group of firms by an agreement dated 19.10.2007. According to the ld. Counsel, the assessee alongwith other co-owners, availed housing loan of ₹ 5 crores for the purpose of construction of the building. In fact, the above said ₹ 5 crores was disbursed by Indian Bank, Tirunelveli Branch on four installments. Out of the f .....

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ounsel further submitted that the second and third installments of ₹ 1 crore and ₹ 2 crores respectively, was in fact used for the purpose of construction by transferring the amount to the Current Account of RMKV & Sons, R.K. Salai, Chennai. The ld. Counsel further pointed out that out of the final installment of ₹ 175 lakhs, a sum of ₹ 70 lakhs was paid to various temples on behalf of RMKV & Sons as per the order of the Hindu Charitable & Religious Endowments .....

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wners to pay the donation of ₹ 70 lakhs directly to the temples as per the direction of the HR&CE. Therefore, this amount of ₹ 70 lakhs was in fact paid to four temples as per the direction of HR&CE on behalf of RMKV & Sons, a partnership firm. Therefore, for all practical purposes, the loan amount received by the assessee instead of paying to RMKV & Sons, it was paid directly to the temples as donation. 2. On a query from the Bench what is the purpose for which the d .....

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the recommendation of the Joint Commissioner, granting lease of the said land for three years subject to the condition that donation has to be paid to the temples. In fact, the Commissioner directed to pay donations as follows: I Arulmighu Mutharamman Temple, Palayamkottai - ₹ 20 lakhs Ii Manimurthy Easwarar Vinayagar Temple - ₹ 15 lakhs Iii Anbu Ashram managed by Arulmigu Nellaiappar Temple - ₹ 15 lakhs Iv Kuthalam Arulmigu Parasakthi Ladies College - ₹ 20 lakhs 3. Conse .....

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herefore, instead of repaying the cost of construction to RMKV & Sons, the co-owners/ assessee paid the amount directly to the temples as per the direction of HR&CE. Therefore, the interest paid by the assessee on ₹ 70 lakhs has to be allowed. On a query from the Bench, the ld. Counsel clarified that the assessee is not a partner in RMKV & Sons. 4. On the contrary, Shri S. Das Gupta, ld. Departmental Representative submitted that the assessee is a partner in RMKV group of conce .....

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wed the interest on loan of ₹ 83 lakhs. Now, before this Tribunal, the ld. Counsel claims that he is not pressing the ground with regard to diversion of the amount to the extent of ₹ 13.50 lakhs. Therefore, now dispute is only in respect of ₹ 70 lakhs. According to the ld. Counsel, this amount of ₹ 70 lakhs was directly paid to four temples as donation by the assessee and other co-owners. Even though 50 cents of land was taken on lease by RMKV & Sons for their busines .....

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of the cost of construction, according the ld. DR, there is no material available on record to show that what was paid by the assessee to the temples as donation is towards repayment of cost of construction incurred by RMKV & Sons. Therefore, according to the ld. DR, the CIT(A) has rightly confirmed the disallowance made by the Assessing Officer. 5. According to the ld. DR, inspite of specific query made by the Assessing Officer, no evidence to establish the nexus between the amount spent by .....

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#8377; 13.50 lakhs was diverted for purchasing the land therefore, he is not pressing the disallowance of interest on this ₹ 13.50 lakhs. Now the dispute is with regard to ₹ 70 lakhs which was given to four temples as donation. The contention of the assessee is that RMKV & Sons constructed the building by using their funds therefore, this sum of ₹ 70 lakhs has to be reimbursed to them. Instead of reimbursing that amount to RMKV & Sons, it was paid to various temples on .....

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k. As per this lease agreement, there is no reference about the liability of the assessee to reimburse any of the expenditure said to be incurred by RMKV & Sons, partnership firm. The lease period is for 20 years from 19.10.2007. Apart from rental deposit of ₹ 50 lakhs, RMKV & Sons has to pay rent of ₹ 3,75,000/- per month inclusive of service tax. Therefore, the claim of the assessee that RMKV & Sons has invested their funds for construction of the building and the asses .....

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that the Assessing Officer has rightly disallowed the claim of the assessee. In the absence of any material to indicate the nexus between the utilization of funds by RMKV & Sons for construction and repayment of donation by the assessee to various temples, this Tribunal is of the considered opinion that the CIT(A) has rightly confirmed the addition. If at all, there was any obligation for reimbursing the cost of construction as claimed by the assessee then definitely there should be a refere .....

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d. 7. The next ground of appeal is against addition towards unexplained investment in silver articles to the extent of 18.23 kgs. 8. Shri G. Baskar, ld. Counsel for the assessee submitted that during the course of search operation, the Revenue authorities found 43.28 kgs of silver. The Assessing Officer himself accepted the silver declared in the wealth tax return to the extent of 15.05 kgs and treated another 10 kgs of silver as streedhan property. The Assessing Officer treated the balance 28.2 .....

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he contrary, Shri S. Das Gupta, ld. Departmental Representative submitted that the Revenue authorities found 43.28 kgs of silver jewellery during the course of search operation. However, the Assessing Officer himself found 15.05 kgs of jewellery was declared in the wealth tax return therefore, it was allowed. The Assessing Officer also was very reasonable in deducting 10kgs of silver jewellery as streedhan property and made addition only the value of silver jewellery to the extent of 28.23 kgs. .....

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y material, the claim of the assessee that she might have received 10 kgs of silver articles for the past 25 years cannot be accepted. Therefore, the CIT(A) ought to have confirmed the order of the Assessing Officer. 11. We have considered the rival submissions on either side and also perused the material available on record. Admittedly, the assessee s family is engaged in business at Tirunelveli and Chennai. Because of the business, the assessee s family is having a status in the society, there .....

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dhan property is totally impossible since the streedhan property was gifted by the respective parents, therefore, expecting documentary evidence for the streedhan property may not be possible. However, the streedhan has to be estimated depending upon the social status of the respective family in the society. Similarly, depending upon the social status, it cannot be totally ruled out the possibility of receiving gold and silver ornaments as gift. Admittedly, the assessee was married for the last .....

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ring her marriage. Similarly, for the last 25 years of married life they might have also received 10 kgs of silver articles as gift. In those circumstances, this Tribunal is of the considered opinion that that the balance remains to be explained is only 13.23 kgs of silver articles. It is made clear this estimation is made by taking into consideration the business of the assessee s family and the social status maintained by them in the area in which they are living. Therefore, the balance silver .....

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nue authorities found the following jewellery even though the same was not supported by invoices: (i) Shoba Hazar - jewellery valuing ₹ 1,77,500 (ii) Jaipur Gems - jewellery valuing ₹ 1,98,970/- Since the above purchases were not supported by any vouchers, the Assessing Officer made the addition. However, the CIT(A) allowed the claim of the assessee on the ground that the purchase of the above jewellery was supported by book entries. According to the ld. DR, the CIT(A) ought not to h .....

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e value of 2.38 carats of diamond. The Revenue has accepted the order of the CIT(A) in respect of the addition made to the extent of nearly ₹ 10 lakhs. According to the ld. Counsel, the purchase of jewellery to the extent of ₹ 3,76,470/- is reflected in the books even though the supporting vouchers were not available. The payment reference were available in the bank account maintained by the assessee with ICICI Bank. Therefore, according to the ld. Counsel, the CIT(A) has rightly all .....

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a reference in the bank account maintained by the assessee with ICICI Bank and the payments were made through cheques. Therefore, it is obvious that the purchase of jewellery to the extent of ₹ 3,76,470/- was made through known sources of income the addition of ₹ 3,76,470/- has rightly been deleted by the CIT(A). This Tribunal do not find any infirmity in the order of the CIT(A). Accordingly the same is confirmed. 16. Now coming to the addition of unexplained investment in 2.38 carat .....

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assessee submitted that the assessee s family is engaged in business at Tirunelveli and Chennai, therefore, inheritance of 2.38 carats of diamond from her mother-in-law cannot be doubted by the Revenue authorities. 18. We have considered the rival submissions on either side and also perused the material available on record. The claim of the assessee that 2.38 carats of diamond was inherited from her motherin- law, cannot be doubted since the status of the family in society would indicate that th .....

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he order of the CIT(A) on this issue. Accordingly, the same is confirmed. 19. The next ground of appeal is with regard to unexplained investment in silver articles. We have discussed this issue elaborately in the earlier part of this order in assessee s appeal. In view of our finding therein, this ground of the Revenue is dismissed. I.T.A.No. 238/Mds/2013 - Shri V. Thiyagarajan 20. In this appeal, the first ground is with regard to disallowance of interest on housing loan borrowed by the assesse .....

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is dismissed as not pressed. 22. The next ground of appeal is with regard to unexplained investment in gold jewellery to the extent of 407.3 gms and diamond jewellery to the extent of ₹ 1,38,800/-. 23. Shri G. Baskar, ld. Counsel for the assessee submitted that during the course of search operation, the Revenue authorities found 1998.30 gms of gold jewellery and 9.93 carats of diamond jewellery. After excluding impurities, the net weight of gold jewellery found was 1864.71 gms. The Assess .....

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gms of gold jewellery and the value of 9.93 carats of diamond jewellery. According to the ld. Counsel, the difference between the gross and net weight of jewellery comes to 133.59 gms. If this is excluded, the difference would be only 274 gms. According to the ld. Counsel, the assessee has only one daughter who was married. The assessee s son-in-law is living at Chennai. Being an only one daughter, she used to live with the assessee at Tirunelveli. According to the ld. Counsel, even the grandch .....

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on, the ld. Counsel pointed out that about 80 sovereigns of gold jewellery belongs to assessee s daughter was available with him. However, the Assessing Officer accepted the claim only to the extent of 417 gms. The balance jewellery acquired by the assessee s daughter subsequent to her marriage to the extent of 248 gms was not even considered. Referring to the diamond jewellery, the ld. Counsel pointed out that the assessee was married 45 years back. By considering the social status of the famil .....

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e addition by the Assessing Officer. Considering the age of the assessee that he has now completed 70 years and engaged himself in a reputed family business in textile over the decades of period, according to the ld. Counsel, the CIT(A) ought to have deleted the entire addition. 24. On the contrary, Shri S. Das Gupta, ld. DR submitted that the CIT(A) confirmed the value of the jewellery to the extent of 407.3 gms and diamond jewellery to the extent of ₹ 1,38,800/-. Though the assessee clai .....

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nnot close their eyes to the customary practice prevailing in this part of the country. In other words, it is a usual practice in this part of the country to give streedhan to the bride by the respective parents and even the bridegroom s parents used to gift gold and diamond jewellery to the bride at the time of marriage. What is prohibited by law is dowry and not the streedhan property. In other words, the customary practice of giving streedhan is in consonance with the provisions of Hindu Marr .....

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only one daughter and it is not uncommon that the daughter to come and stay with her parents especially when they have no other children. Therefore, the claim of the assessee that part of the jewellery which was gifted to their daughter was left in their house cannot be doubted. Moreover, the claim of the assessee that the assessee s daughter has acquired 240 gms of gold jewellery subsequent to the marriage also cannot be ruled out by taking into consideration their family status. Of course, ma .....

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and net weight. On a query from the Bench, the ld. Counsel explained that this difference is due to the weight of the stone embedded in the jewellery and impurities. This Tribunal is of the considered opinion that it is common practice in all jewellery shop that stones are valued at the gold rate and in addition to the rate which prevails for the gold. The assessee has also required to pay charges for wastage, making charges besides the applicable taxes. Therefore, this Tribunal is of the consid .....

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dence may not be practically possible. Therefore, this Tribunal is of the considered opinion that by taking into consideration the customary practice which prevails in this part of the country and the social status of the assessee, and the nature of business engaged by the assessee, this Tribunal is of the considered opinion that the assessee would have earned the value of 9.93 carates of diamond jewellery. Therefore, no addition is called for with regard to the value of diamond jewellery of 9.9 .....

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tal Representative submit that the facts are identical to that of Smt. V. Dhanalakshmi in I.T.A.No.234/Mds/2013. In view of the above, as discussed elaborately in the earlier part of this order in the case of Smt. V. Dhanalakshmi, the disallowance made by the lower authorities is sustained. 28. The next ground is with regard to addition of unexplained investment to the extent of 600.2 gms of gold jewellery. 29. Shri G. Baskar, ld. Counsel for the assessee submitted that the Revenue authorities f .....

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600.2 gms of jewellery. According to the ld. Counsel, the assessee s marriage took place 11 years back and about 1200 gms of gold jewellery was received as streedhan property by his wife. Out of this 601 gms was found at the residence of the assessee and the balance 599 gms jewellery was found in the residence of the assessee s father. The ld. Counsel further submitted that some of the jewellery were exchanged and converted into new jewellery. The ld. Counsel further submitted that about 200 gm .....

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as confirmed by the CIT(A). 30. The ld. Counsel further submitted that during the course of search operation, in fact, the Revenue authorities found 1692.2 gms of gross weight of jewellery whereas the net weight was 1594.5 gms. The difference between the gross and net weight is 97.7 gms. The CIT(A) has not given any credit for subsequent acquisition of jewellery by the assessee s wife. Therefore, the addition made by the lower authorities needs to be deleted. 31. On the contrary, Shri S. Das Gup .....

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sessing Officer valued the gold at ₹ 13,67,440/- and the diamond at ₹ 3,81,250/-. After considering the explanation of the assessee, the Assessing Officer himself accepted the claim of the assessee to the extent of 492 gms. Therefore, the CIT(A) is not justified in deleting the addition made by the Assessing Officer to the extent of value of 492 gms of jewellery. 32. We have considered the rival submissions on either side and also perused the material available on record. The only di .....

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osed by the assessee to the extent of ₹ 2.41 lakhs and the CIT(A) has also accepted the claim of the assessee that the jewellery of two minor sons to the extent of 100 gms each. The contention of the assessee appears to be before this Tribunal is that even though the assessee claimed 1200 gms of streedhan jewellery belongs to his wife, the Assessing Officer accepted only 492 gms of jewellery. This Tribunal is of the considered opinion that gifting jewellery at the time of marriage is commo .....

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ross and net weight of the jewellery is 97.7 has to be taken into consideration. This Tribunal is of the considered opinion that while purchasing jewellery the assessee has to make payment on the gross weight and not on the net weight. The stones which form part of jewellery would be weighed alongwith the gold and the assessee has to necessarily pay the cost of the stone at gold rate. Therefore, there is no justifiable reason for excluding the difference between the gross and net weight of the j .....

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Kumarawswamy 33. The ld. Counsel submitted that Shri P. Pranav Kumaraswamy is the Legal Heir of Late Shri K. Ponanand. 34. The first ground arises for consideration is unexplained investment in the gold and diamond jewellery. 35. Shri G. Baskar, ld. Counsel for the assessee submitted that during the search operation the Revenue authorities found 2511.2 gms of gold jewellery and 24.99 carats of diamond jewellery. The Assessing Officer accepted the explanation of the assessee for 1007 gms of gold .....

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d jewellery and 11.74 carats of diamond jewellery. Therefore, both assessee and the Revenue filed appeal against the order of the CIT(A). 36. Referring to the assessee s appeal, the ld. Counsel pointed out that the difference between the gross and net weight of jewellery comes to 228.2gms. According to the ld. Counsel, merely because the assessee could not preserve the bills for acquisition of jewellery, the Revenue authorities cannot make any addition. According to the ld. Counsel, the assessee .....

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her 100 gms was given credit for the assessee s son. The CIT(A) has also given credit for the assessee s daughter 250 gms of gold jewellery. The CIT(A) further accepted explanation of the assessee with regard to diamond jewellery to the extent of 13.25 carats. The acquisition of jewellery by drawings made from the business was accepted to the extent of 650.2 gms. Therefore, no material was available on record either to support the investment in jewellery from the drawings said to be made from th .....

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f gold jewellery and the assessee s mother might have received gold jewellery to the extent of 150 gms and the jewellery declared in the wealth tax return was 57 gms and the remaining jewellery to the extent of 1504.2 gms and 24.99 carats of diamond jewellery was treated as unexplained investment. The CIT(A) by taking into consideration the status of the assessee accepted another 1100 gms of of gold jewellery and 13.25 carats of diamond jewellery. The contention of the Revenue before this Tribun .....

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rly, assessee s mother might have also received jewellery. Gifting of diamond ear rings and rings are also common in this part of the country during the course of marriage. The assessee, being an outstanding businessman in textiles, there is possibility of purchasing gold jewellery by drawing money from the business also cannot be ruled out. The only contention of the Revenue is that no supporting material was available either for acquisition of the jewellery or for receipt of streedhan. During .....

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e assessee s wife might have received 1000 gms of gold jewellery and the assessee also by drawing money from the business might have purchased 650.2 gms of as found by the CIT(A). This Tribunal is of the considered opinion that the assessee might have received 24.94 carats of diamond jewellery both by streedhan and from her wife and mother and also might have purchased in the course of period. Therefore, this Tribunal is of the considered opinion that making addition to the extent of 11.74 carat .....

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ing the value. After giving deduction of 1000 gms instead of 800 gms as streedhan jewellery to the assessee s wife, the balance remains to explain is only 204 gms of gold jewellery. Accordingly, the orders of the lower authorities are modified and the Assessing Officer is directed to make addition to the extent of 204 gms of gold jewellery. 39. In the assessee s appeal, the assessee has taken an additional ground relating to the disallowance of interest on the housing loan to the extent of ͅ .....

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an of ₹ 83.5 lakhs. 41. Both the ld. Counsel for the assessee and the ld. Departmental Representative submit that the facts are identical to that of Smt. V. Dhanalakshmi in I.T.A.No.234/Mds/2013. In view of the above, as discussed elaborately in the earlier part of this order in the case of Smt. V. Dhanalakshmi, the disallowance made by the lower authorities is sustained. I.T.A.No.240/Mds/2013 & Revenue s appeal 318/Mds/2013 - Shri K. Mahesh 42. Both assessee and the Revenue filed appe .....

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of appeal is with regard to unexplained investment made in gold jewellery to the extent of 261.54 gms. In fact, the Assessing Officer made an addition of 798.54 gms of jewellery. The CIT(A) deleted the addition of 537 gms of gold jewellery. The Revenue has filed appeal against the order of the CIT(A) deleting 537 gms of gold jewellery. 45. Shri G. Baskar submitted that during the course of search operatiuon, the Revenue authorities found 1932 gms of gross gold jewellery. The net weight of the g .....

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addition sustained by the CIT(A). According to the ld. Counsel, the Assessing Officer made addition only on estimate basis therefore, the difference has to be allowed in the hands of the assessee. According to the ld. Counsel, when compared to net weight, the difference is hardly 6%, therefore, the difference has to be excluded. At the best, an addition could be made only to the extent of 106 gms of gold jewellery. 46. On the contrary, the ld. DR submitted that the CIT(A) deleted the unexplaine .....

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time of opening of the branches in Chennai and Tirunelveli. Subsequently, the assessee claimed before the lower authority that the same was purchased out of the drawings. In view of the conflicting claim made by the assessee, according to the ld. DR, the CIT(A) ought not to have deleted the addition made by the Assessing Officer. 47. We have considered the rival submissions on either side and also perused the material available on record. The Assessing Officer accepted the claim of the assessee .....

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ees, this Tribunal found that they might have received 1000 gms of gold jewellery as streedhan during the marriages. Therefore, this Tribunal is of the considered opinion that the assessee s wife also might have received 1000 gms of gold jewellery at the time of marriage. If that 1000 gms is taken into consideration, the total gold jewellery explained by the assessee comes to 1233.46 gms. The CIT(A) found that the Assessing Officer has not given any credit for purchase of 437 gms of jewellery wi .....

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, the CIT(A) has accepted the explanation of the assessee to the extent of 537 gms of gold jewellery. This Tribunal is of the considered opinion that the assessee might have purchased by investing the cash drawn in assessment years 2007-08 and 2008-09 jewellery to the extent of 437 gms as found by the CIT(A). Possession of gold jewellery to the extent of 100 gms cannot also be totally ruled out. Therefore, this Tribunal is of the considered opinion that the CIT(A) has rightly deleted the additio .....

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eight. In view of the above discussion, this Tribunal is of the considered opinion that 61.54 gms of gold jewellery remains to be unexplained. Accordingly, the orders of the lower authorities are modified and the Assessing Officer is directed to make addition of 61.54 gs of gold jewellery as unexplained investment. 48. Now coming to the diamond jewellery, ld. Counsel for the assessee submitted that the Revenue authorities found 38.01 carats of diamond jewellery. The Assessing Officer accepted th .....

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during the occasion of marriage. The ld. Counsel further submitted that the assessee received 2.38 carats of diamond from his mother Smt Selvavinagathammal which was declared in the wealth tax return for the assessment year 1992-93. 49. On the contrary, the ld. DR submitted that the Assessing Officer accepted the explanation of the assessee to the extent of 17.40 carats of diamond jewellery. The CIT(A) deleted the addition made by the Assessing Officer to the extent of 10.75 carats of diamond je .....

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lace etc. during the marriage of girl child. It is not in dispute that the assessee s father-in-law was residing in Dubai. The assessee is also engaged in business at Tirunelveli and Chennai. By taking into consideration the status of the assessee in society, the claim of the assessee that the assessee s wife received streedhan during her marriage cannot be ruled out. As rightly submitted by the ld. Counsel, it is common in this part of the country to give streedhan to the girl child during her .....

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d of appeal is with regard to unexplained investment in silver articles. 52. Shri G Baskar, ld. Counsel for the assessee submitted that the Revenue authorities found 28.17 kgs of silver articles during the course of search operation. The net weight was 43.28 kgs. The Assessing Officer accepted the explanation of the assessee to the extent of 10.60 kgs and the difference of 17.57 kgs was taken as unexplained investment by the Assessing Officer. However, on appeal by the assessee, the CIT(A) delet .....

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