1984 (6) TMI 133

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....th the valuation of certain jewellery in computing the net wealth of the assessees. 2. The two assessees before us are late Kamalambal Ammal and her great grand daughter, Vidyalakshmi. The house of Kamalambal Ammal was searched on 29-8-1972 and several items of jewellery were seized by the income-tax department on 4-9-1972 and 5-9-1972. An order was made under section 132(5) of the Income-tax A....

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....p of the jewellery, reference was made by the income-tax department to the gold control authorities. It is also seen that on 3-2-1979 the Collector of Central Excise and Customs passed an order under the Gold Control Act imposing penalty and ordering confiscation of the ornaments. An appeal was decided on 20-3-1980 revoking the confiscation. 3. On these facts, the question at issue before us is....

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....en though the department was holding on the jewellery, it should be treated as fully valuable assets of the assessee independent of any liability to pay tax thereon. 4. On the consideration of the rival submissions, we are of the opinion that the assessees are entitled to succeed only on the question of valuation. We find that the assessees were the owners of the jewellery and upon the seizure,....

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....e charge that one could get the value of the encumbered assets--CWT v. Smt. Shirinbanoo [1976] 102 ITR 735 (Guj.). On that principle, the tax liability estimated in the 132(5) order at Rs. 16,54,000 has to be set off against the jewellery valued in that order at Rs. 4,47,000 which leaves practically nothing for being added to' the net wealth. In respect of the valuation dates after 1976 also, even....