Losses from sale of jewellery disallowed and held as unexplained monies as jewellery wasn’t reflected in WT return

Section 69A of the Income-tax Act, 1961 - Unexplained moneys (Jewellery) - Assessment year 2004-05 - Assessee was a legal heir of 'W' - During relevant assessment year, assessee filed his return showing loss arising from sale of diamond jewellery belonging to 'W' - In order to prove genuineness of sales transactions, assessee produced sale invoices and submitted that sale consideration had been received through account payee cheques - Assessing Officer rejected documentary evidence furnished by assessee and concluded that no such sale of jewellery took place - He thus treated amount of sales deposited in bank as income from unexplained sources - Tribunal confirmed order of Assessing Officer - It was apparent from records that nothing had been disclosed in respect of jewellery in assessee's wealth tax returns - Moreover, evidence which had been produced was of recent origin in form of sale invoice or report of valuer but initial onus placed upon assessee was not discharged by providing unimpeachable evidence - Whether on facts, assessee failed to prove that sales transactions in question were genuine and, therefore, impugned addition made by Tribunal was to be upheld - Held, yes [Para 7] [In favour of revenue]

Refer:[2014] 45 taxmann.com 224 (Punjab & Haryana)

HIGH COURT OF PUNJAB AND HARYANA

M.L. Sachdeva
v.
Income Tax Officer, Ward 1(1), Faridabad