Santosh Bansal vs JCIT, Central Circle 16

Parties Involved

Facts Summary

A search and seizure operation under section 132 of the Income-tax Act, 1961 was conducted on 17.11.2021 on the business and residential premises of the Pacific Group, which included the assessee, Santosh Bansal. Jewellery and bullion worth Rs.1,56,76,253/- and Rs.1,09,55,201/- respectively were found, out of which Rs.62,22,911/- worth of jewellery and Rs.71,45,681/- worth of bullion were seized. The assessee was asked to provide reconciliation of the seized jewellery with her books of account. The assessee submitted a ledger account showing the jewellery and bullion, but the Assessing Officer (AO) found the assessee's submissions unsatisfactory as she could not provide documentary evidence to corroborate the source of the gold jewellery. Consequently, the AO made an addition of Rs.1,46,05,349/- for the jewellery/bullion. Aggrieved by this order, the assessee appealed to the Commissioner of Income Tax (Appeals) (CIT(A)), who dismissed the appeal. The assessee then filed an appeal before the Income Tax Appellate Tribunal (ITAT).…

Legal Issues

• 1. Whether the order of the CIT(A) is bad in law and on facts.
• 2. Whether proper opportunity of being heard was provided by the AO.
• 3. Whether the assessee provided sufficient documentary proof for the acquisition of gold jewellery weighing 3312.02 gms.
• 4. Whether the value of gold jewellery should be based on rates prevalent on 14.01.2022 or prior to 2006.
• 5. Whether the jewellery was part of the declared assets in the return filed for AY 2020-21.
• 6. Whether the source of 3312.02 gms of jewellery remains unexplained.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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