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2016 (11) TMI 1631

..... #8377; 2.23 crores and the cash of 3.00 crores under VDIS, she has not filed the wealth tax returns which implies that the wealth declared under VDIS has been exhausted and nothing is carried forward for subsequent year. The assessee is from the educated and from affluent family, assisted by the legal counsels and aware of the wealth tax provisions. In the absence of any evidence for purchase of jewellery from the explained sources, and in the absence of wealth tax returns, we are unable to accept the source of jewellery was from explained sources/VDIS. The assessee cannot take an advantage of VDIS disclosure for explaining the source of investment in jewellery by evading wealth tax. We are of the considered opinion that the explanation of .....

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..... 8.2011. The assessee is mother of Shri R.Sabapathy and wife of Shri S.Raja Rathinam belonging to the Saravana group. During the course of search proceedings at the residential premises of Shri R.Sabapathy situated at No.10, Lakshman Street T.Nagar, Chennai, gold and jewellery belonging to the assessee Smt. R.Revathy found and seized as per Annexure-Ann/PMS/Gold/S-1 dated 18.08.2011. The value of the gold was valued at ₹ 47,37,496/-. 3. The Assessing Officer issued notice under section 153(C) of the Act and the assessee filed the return of income declaring the total Income of ₹ 24,90,170/-. The assessee has not included the value of gold jewellery found at the time of search in the return of income. The Assessing Officer issued n .....

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..... ued before the CIT(A) that the addition was not disputed to buy peace. The Ld.CIT(A) considered the submissions made by the assessee and cancelled the penalty imposed by the Assessing officer. 5.1 Aggrieved by the order of the Ld.CIT(A), the Revenue is in appeal before us. Appearing for the Revenue, Mr. Shiva Srinivas, the Ld.DR argued that there was a search and seizure action carried out in the assessee s residential premises and found gold jewellery worth ₹ 47,37,496/-. Though, there was no evidence and proof for purchase of jewellery from the accounted sources, the assessee has neither declared the value of jewellery u/s.132(4) nor in the return of income filed in response to the notice u/s.153(c) of the Act. The assessee has admi .....

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..... efore, the Ld.AR vehemently argued that the gold jewellery found during the course of search was clearly explained and there is no case for penalty u/s.271(1)(c). For a query from the Bench, the Ld.AR replied that the assessee has not filed the wealth tax details. 6. In the rejoinder, the Ld.DR submitted that the assessee has not declared the jewellery valuing about ₹ 47.37 lakhs in the Wealth Tax returns. In fact, it is found that no Wealth Tax returns are filed by assessee, even though the gold jewellery attracts Wealth Tax. The gold jewellery found during the course of search was over and above the exemption of Wealth Tax. Therefore, the Ld.DR contended that the assessee cannot take two contrary stands for Wealth Tax purpose and fo .....

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..... estment was from the VDIS, gift and Stridhan etc. Though the assessee admitted jewellery of ₹ 2.23 crores and the cash of 3.00 crores under VDIS, she has not filed the wealth tax returns which implies that the wealth declared under VDIS has been exhausted and nothing is carried forward for subsequent year. The assessee is from the educated and from affluent family, assisted by the legal counsels and aware of the wealth tax provisions. In the absence of any evidence for purchase of jewellery from the explained sources, and in the absence of wealth tax returns, we are unable to accept the A.Rs argument that the source of jewellery was from explained sources/VDIS. The assessee cannot take an advantage of VDIS disclosure for explaining th .....

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