The Income Tax Appellate Tribunal (ITAT), Chandigarh Bench presided by Ms Diva Singh, Judicial Member, and Mr Vikram Singh Yadav, Accountant Member has held that unexplained income offered consolidated basis under Pardhan Mantri Garib Kalyan Yojna (PMGKY) and deletes addition as unexplained money under section 69A.
The appellant, M/s C.M. Jewellers is a partnership firm. A search and seizure operation, as well as a survey operation, were carried on at the business and residential premises of the assessee u/s 132(1) and 133A. On behalf of the search and survey, the AO made addition under section 69A alleging that there was an excess of silver stock as per books. The CIT(A) dismissed the appeal; hence, the appellant approached the ITAT.
The appellant’s counsel submitted differences unearthed during the survey, including a difference of Rs. 8,60,778/- was considered as Income and was offered on a consolidated basis under Pardhan Mantri Garib Kalyan Yojna (PMGKY). The counsel further observed that as per section 199C of Taxation and Investment Regime for Pradhan Mantri Garib Kalyan Yojna, 2016 “Declaration of undisclosed Income” and assessee is eligible to declare income for AY 2017-18 and earlier assessment year. As such, the declaration under the scheme was not confined to the deposit under demonetization as observed by AO.
The Tribunal observed that the assessee is dealing in gold and silver jewellery etc. and the discrepancies in the silver jewellery cannot be arbitrarily said to be from an unexplained source as no allegation has been made in the Survey or referred to by the AO. The discrepancy in the silver stock was in the regular course of the business of the assessee.
The Tribunal by relying on the decision of the jurisdictional High Court in CIT Vs Smt. Sudershan Gupta has held that “on a consideration of facts on record, the specific Scheme, surrender letter and case law relied upon, we are of the view that the addition cannot be sustained. Allowing the appeal of the assessee, the addition is directed to be deleted”.
Mr Rohit Goel, CA appeared for the assessee, and Ms Priyanka Dhar appeared for the revenue.
Subscribe Taxscan Premium to view the JudgmentSupport our journalism by subscribing to Taxscan AdFree. Follow us on Telegram for quick updates.
