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TMI Blog2018 (5) TMI 710X X X X Extracts X X X X X X X X Extracts X X X X ..... roceedings, the Assessing Officer asked the assessee to explain the jewellery found from the residence as well as Locker of the assessee amounting to Rs. 6,35,847/- and Rs. 9,68,957/- respectively. The assessee explained that the jewellery found at the residence has been acquired by her on various occasions like marriage, birth of children, mundan ceremony of children as per culture and religion prevalent in the Hindu Society. 3. So far as jewellery found from the locker of the assessee at Oriental Bank of Commerce valued at Rs. 9,68,957/- is concerned, it was explained that the correct valuation is Rs. 9,10,157/- and not Rs. 9,68,957/- since there is a totaling mistake in the valuation report amounting to Rs. 58,800/-. It was further submitted that during the course of search, the statement of the assessee was recorded wherein she had stated that a portion of this jewellery originally belonged to her mother in law, who had given the same to the assessee before her death, since she was staying with the assessee at that time. A chart specifying the jewellery inherited from the mother in law of the assessee was filed before the Assessing Officer. Based on the arguments advanced by t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of income was given to the appellant to withdraw the relief given to appellant on account of her deceased mother in law (500 gms of gold jewellery) and two sons (200 gms of gold jewellery) (iv) In view of the judicial pronouncements, no relief can be given on account of a deceased lady. The submissions of the appellant with regard to mother -in - law's jewellery account be accepted as no proof has been given regarding the investment of the same, explained in her hands. With regard to appellant's contention regarding receipt of same, the courts have taken such situations into consideration while giving benefit of jewellery weighing 500 gms to married ladles. (v) In view of the same, this investment in 500 gms gold attributed to appellant's mother in law is also treated as unexplained investment u/s 69 of the IT Act. As the AO has treated the jewellery weighing 400 gms in hands of the appellant explained, this is increased to 500 gms in view of judicial pronouncements. Enhancement is made to the appellant's taxable income treating 400gms (500 gms-100gms) of gold found during search also as unexplained investment u/s 69 of the IT Act valued at Rs. 3,80,000/- (Rs. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the mother in law of the assessee who had given the same prior to her death. It was explained that the mother in law of the assessee was staying with the assessee Smt. Manju Gupta. Referring to the confirmations by the various family members i.e. brothers and sisters of husband of the assessee placed at page 38 of the Paper Book, he drew the attention of the Bench to the confirmations given by them regarding the jewellery given by Smt. Ramanandi Devi, mother in law of the assessee, Smt. Manju Gupta. He submitted that considering the status of the assessee, the CBDT Instruction No.1994 dated 11.05.1994 and the jewellery given by the mother in law of the assessee, the entire jewellery stands explained and no addition is called for. Referring to the decision of the Pune Bench of the Tribunal in the case of National Auto World vs. ITO reported in 162 TTJ 74, he submitted that the Tribunal at para 92 of the order has decided a somewhat similar issue and has held that although the assessee could not furnish any clinching documentary evidence, however, considering the status of the assessee and level of income of the entire family members it cannot be ruled out that the assessee was i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... status as well as CBDT Instruction, no addition is called for. 11. We find some force in the above argument of the ld. counsel for the assessee. It is an admitted fact that the assessee during the course of search had stated that a portion of the jewellery originally belonging to her mother in law was given by her to the assessee prior to her death since she was staying with her. The confirmation from the family members of the husband of the assessee was also filed before the Assessing Officer for which he had accepted the genuineness of such 500 gms apart from 700 gms as belonged to the assessee. 12. We find the Pune Bench of Tribunal in the case of National Auto World (supra) has decided the identical issue by observing as under :- "92. We have carefully considered the rival submissions. In our considered opinion, firstly, the CIT(A) made no mistake in allowing the benefit of 600 gms. of jewellery for the reasons assigned by him. Secondly, with regard to the assessee's claim for availability of ancestral jewellery, the same, in our view, has been wrongly shut out by the CIT(A). No doubt, the assessee could not furnish any clinching documentary evidence, so however considerin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eing held jointly by the family." 14. Since in the instant case the brothers and sisters of the husband of the assessee have confirmed that the mother in law of the assessee had given her jewellery weighing 500 gms before her death since she was staying with her and since the Assessing Officer had also accepted the same, therefore, we find merit in the argument of the ld. counsel for the assessee that order of CIT(A) enhancing the income is not proper. We, therefore, set-aside the order of CIT(A) and allow the jewellery to the extent of 500 gms as explained. The Assessing Officer is directed to delete addition to this extent. 15. Now coming to the addition sustained by the Assessing Officer is concerned, we find the Assessing Officer had allowed credit to the tune of 400 gms to the assessee. It is an admitted fact that no wealth-tax return was filed by the assessee to substantiate the acquisition/availability of jewellery. In absence of the same and going by CBDT Instruction No.1916 dated 11.05.1994 we allow 500 gms of jewellery in the hands of the assessee as explained as against 400 gms allowed by the Assessing Officer. Thus, in effect 284 gms of gold remains unexplained the v ..... X X X X Extracts X X X X X X X X Extracts X X X X
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