ACIT v. Dwaraka Prasad Malpani (2013) 21 ITR 719 (Cochin) (Trib.)

S.69: Unexplained investments-Search and seizure-Affidavit-Gold and gold ornaments-Assessee filing

affidavits containing details of gifted jeweler-addition to be deleted. (S.132)

The Assessing Officer made addition of the value of gold jewellery, and gold ornaments found in the locker owned

jointly by the assessee and his wife. They were explained to belong to the assessee`s wife, giving the break-up thereof. The Assessing Officer did not accept this as the assessee`s wife was a wealth tax payer for the relevant year, i.e., in which the gift was received, and also for the subsequent years, while this gift was not verifiable with reference to her total wealth. The Commissioner (Appeals) deleted the addition holding that the affidavits contained full details of the gifted jewellery, the genuineness of which had not been doubted by the Assessing Officer. On appeal by the Department : Held, (i) that once the assessee had furnished the affidavits, it was incumbent on the Assessing Officer to cross-examine the deponents. The quantity claimed to be received in gift was not high in relation to the status of the assessee's family or of the donors. Also, a reference to the wealth-tax returns of the assessee`s wife was not relevant in view of a change in the wealth-tax law with effect from assessment year 1995-96. The order of the Commissioner (Appeals) was to be upheld in the case of the assessee.