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TMI Blog2020 (8) TMI 126X X X X Extracts X X X X X X X X Extracts X X X X ..... f unexplained jewellery. The addition so made and confirmed by the ld. CIT(A), Kota being contrary to the provisions of law and facts, kindly be deleted in full." 2. The ld AR submitted that a search and seizure operation U/s 132(1) of the Act were carried out on 02-07-2015 at the residential premises of the assessee situated at Kota. During the search operations, jewellery including gold and silver items, silver coins, etc. were found in the locker being operated by Smt. Savitri Devi, mother of the assessee and inventoried by the Income Tax Department. The same were got valued by the authorized departmental valuer, Shri Kamal Kant Parekh on 03-07-2015 as under:- Annexure Gross Weight Net weight Value (As per Department ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed and value of this is worked out at Rs,9,06.794/- (340.900*2660). Silver items and jewellery valuing at Rs, 1,50,000/- is treated as unexplained. Thus total addition is worked out at Rs. 10,56,794/- and same is added in taxable income of the assessee U/s 69A of the IT Act, 1961. I am satisfied that, penalty proceedings are required to be initiated U/s 271AAB(1)(c) because assessee has undisclosed income. Therefore, penalty U/s 274 r.w.s. 271AAB(1)(c) is initiated for her undisclosed income" 3. In the first appeal, ld. CIT(A) deleted the addition relating to the gold jewellery, however, the impugned addition of Rs. 1.50 lakhs relating to silver ornaments jewellery and coins was confirmed in the following words:- "7.3 2 Further, regardi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... separate letters dated 13.02.2018 & 10.02.2018. Further, the ld. CIT(A) herself admitted similar explanation with respect to the gold ornaments however, she has completly ignored this fact when it come to silver jewellery and coins. Further, it was submitted that the assessee in his statement recorded U/s 132(1) of the Act in reply to question no. 2 as stated that the silver items belongs to the family members. It was further submitted that the AO has determined the figure of Rs. 1,50,000/- based on blind estimation. It appears that he has confirmed the relief only w.r.t the wealth tax returns of mother Smt Savitri Ladha and Pankaj Ladha. It was submitted that Pankaj Ladha having already declared whatever silver jewelry/coins he possessed, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Hence the entire impugned addition may please be deleted. 7. Per contra, the ld. DR drawn our reference to the findings of the ld CIT(A) at para 7.3.2 of her order wherein the AO's action of treating Rs. 1,72,108 as explained and remaining amount of Rs. 1,50,000/- as unexplained has been held reasonable by the ld CIT(A), it was submitted that given that the assessee has failed to explain the source of investment in silver jewellery and coins and the assessee has already been provided appropriate relief by the AO and no further relief may be provided. He accordingly supported the findings of the lower authorities. 8. We have heard the rival contentions and perused the material available on record. In the statement recorded u/s 132(4), the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n credit of silver coins belonging to Rajaram Ladha and Savitri Ladha as well as silver utencils belonging to Savitri Ladha and also fairly accepted by the ld CIT(A) where she has accepted the assessee's explanation regarding gold jewellery so found during the course of search along with silver jewellery/items. Therefore, once it is accepted that these items belong to all family members and where the assessee has thereafter given specific details regarding such items identified to each of the individual members as per his submissions dated 18.08.2017, the remaining items should therefore be accepted as belonging to respective family members and not just that of the assessee only. Secondly, the assessee and her mother have already declared s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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