SHRI MANOJ B. KULCHANDANI,BHARUCH vs. THE DY.CIT, BHARUCH CIRCLE, BHARUCH

Per Pramod Kumar, AM:

ITA No.217/Ahd/2015 Assessment Year : 2007-08 Page 2 of 3 3. To adjudicate on these grievances, only a few material facts need to be taken note of. The business premises of the assessee was subjected to survey under section 133A of the Income Tax Act, 1961. During this survey, the assessee admitted unaccounted investment in fixed deposit with Syndicate Bank to the tune of Rs.3,50,000/- and unaccounted sale proceeds of gold ornaments to the tune of Rs.4,33,125/-. However, when the assessee filed his return of income, he disclosed unaccounted income representing FD investment at Rs.2,59,000/- since actual FD investment was found to be this figure, and unaccounted income representing sale proceeds of gold ornaments at Rs.2,76,031/- after deducting indexed cost of acquisition at Rs.2,76,031/-. The explanations given by the assessee with respect to these variations were, however, rejected. The Assessing Officer proceeded to make additions on the basis of declarations, and learned CIT(A) confirmed the same. The assessee is aggrieved and is in appeal before us. 4. We have heard the rival submissions, perused the material on record and duly considered facts of the case in the light of the applicable legal position.

ITA No.217/Ahd/2015 Assessment Year : 2007-08 Page 3 of 3 jewellery which was not found with the assessee, even if it is assumed, as is assumed in this case, that gold jewellery not found with the assessee is sold by the assessee. Having held so, we may clarify that it is for the assessee to give reasonable details about actual investment in FD and the year in which gold jewellery in question was purchased. The assessee has to furnish these details to the Assessing Officer, and it is only after examining such details that the Assessing Officer has to decide the matter afresh in the light of our above observations, in accordance with the law and not solely on the basis of statement made by the assessee during the survey proceedings. With these directions, the matter stands restored to the file of the Assessing Officer for fresh adjudication.