TMI Blog2019 (10) TMI 653X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee. The assessee also produced sale bills of the seller along with payment details. Thus, the assessee has completely explained the purchase of jewellery with reference to bills, vouchers and payment details. We are not in conclusion with the CIT(A) that the non disclosure was an after thought. In our opinion where assessee has offered the income in the statement recorded u/s.132(4) of the Act but when the same is explained with reference purchase bills and payment details then the same cannot be treated as un-disclosed income . The case of assessee is also squarely covered by the decision of CIT Vs. S.Khader Khan Son [ 2007 (7) TMI 182 - MADRAS HIGH COURT] wherein it has been held that the statement has no evidentiary value u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of income on 30-09-2011 declaring total income at ₹ 27,73,910/- which was processed u/s.143(1) of the Act. Thereafter, notice u/s.153A of the Act was issued to the assessee to file return of income. During the course of assessment proceedings AO noticed that, certain undisclosed jewellery found during the course of search action and offered as income during search, was not offered to tax in the return filed pursuant to notice u/s.153A of the Act and accordingly, AO issued a show cause notice dt.07-03-2013, referring to the statement recorded u/s.132(4) of the Act. The AO observed that while answering Question No.5, - the assessee have admitted that one diamond necklace having gross weight 95.200 gms and net weight of 82.500 gms value ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onak Gems Pvt. Ltd., showing purchase of diamond jewellery for ₹ 35,33,867/- by Mrs. Alpana Dangi and it was further stated that payment for the same had been made through cheque of IDBI Bank in the name of Mrs.Alpana Dangi. Assessee also produced a valuation report from Mahavir Lodha dt.04-04-2011, wherein a necklace weighing 95.200 grams, with net weight of 84.766 grams had been valued at ₹ 98,16,744/-. The CIT(A) also noted that assessee contended before the AO that the said asset was reflected in the Wealth Tax return of Mrs.Alpana Dangi and in the remand proceedings before the AO, it was reported that on a comparison between the bill issued by M/s.Ronak Gems P. Ltd., and the Valuation Report of the departmental valuer dt.04 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... th Tax Return of his wife and payment was made from the bank account of the assessee that was not offered to tax in the return filed in response to notice u/s.153A of the Act. Ld.AR submitted that the said statement has no evidentiary value as the discrepancy was duly explained during the course of assessment proceedings as well as in the remand proceedings. The ld AR contended that even the AO admitted that number of big and small diamonds were tally however there was some difference in the weights which is bound to be there as the Departmental Valuer valued the jewellary on estimation basis.The ld AR therefore submitted that the unexplained diamond jewellary was fully explained during the assessment proceedings and therefore there is no q ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bmitted that the disclosure was made by the assessee during the course of search while recording statement u/s.132(4) of the Act. Ld. DR also submitted that the necklace was found during the course of search and the assessee admitted that it was bought during the year out of undisclosed income, however, later on assessee stated that the same was bought out of the disclosed sources and tried to explain the same with the bills issued by the sellers and payment details. Therefore, the same is an after thought and cannot be accepted. Hence, the order of CIT(A) needs to be affirmed. 7. After hearing both the parties and perusing material on record, we observe that the necklace was found during the course of search u/s.132(4) of t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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