C I T ,ALWAR Vs. SATYA NARAIN PATNI

JUDGEMENT

(1.) This instant income tax appeal under Section 260A of the Income Tax, Act 1961 (hereinafter referred to in short as 'Act of 1961') filed by the revenue assailing the order of the Income Tax Appellate Tribunal, Jaipur Bench 'A', Jaipur dated 15.1.2010 passed in ITA No.715/JP/09 and cross-objection No.150/JP/2009, relates to assessment year 2005-06. Though the revenue has raised as many as 07 questions which according to the revenue, are substantial questions of law, but primarily, during the course of arguments, counsel for the revenue has contended that the question no.3 pertains to addition of Rs.2,88,176/- made by the Assessing Officer on account of unexplained jewellery found during the search, and whether there was any proper explanation for its deletion deserves consideration of this Court, and according to him, rest of the substantial questions of law, needs no consideration of this court.

(2.) Brief facts which have been culled out on perusal of the impugned orders, are that a search and seizure operation was carried out at the business and residential premises of the assessee on 30.6.2004 where certain incriminating books of accounts and documents were seized. During the course of search operation, cash amounting to RS.1,50,600/- was found besides Gold jewellery weighing 2202.464 gms. valued at Rs.10,53,520/- and Silver items valued at Rs.93,678/-. Looking to the status of the assessee and the statement given during the course of search operation by various family members and considering the fact that there are four married ladies in the house including the wife of the assessee, no jewellery was seized by the authorised officer, however, the jewellery to the extent of 1600 gm was treated as reasonable by the Assessing Officer which had been received by them at the time of their marriage. The balance jewellery weighing 602.464 gm was treated as unexplained in absence of any satisfactory explanation from the assessee and the value of the same which was determined at Rs.2,88,176/-, was added back to the income of the assessee treating the same as purchased out of Income from undisclosed sources of the assessee and accordingly added back to his income. The assessment order came to be passed on 28.12.2006 where this addition was made along with other additions based on the incriminating documents found during the course of search.

(3.) Being dissatisfied with the observations and addition, the respondent-assessee preferred an appeal before the Commissioner of Income Tax (Appeals) Central, Jaipur who vide order dated 19.6.2009, substantially deleted the additions made by the Assessing Officer including the addition of the jewellery made by the Assessing Officer to the tune of Rs.2,88,176/-