2013 (12) TMI 1512

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....32,670/- and ` 4,70,018/- being the value of 242.700 gms and 331.700 gms of gold jewellery       as unexplained investment in the cases of V.G.P Ravidas and V.G. Selvaraj respectively. Since the issue involved in these two appeals is common, they are heard together and disposed off by this common order. 2. The Assessing Officer while completing the assessments noticed that during the course of search excess jewellery of 242.200 gms and 331.700 gms of gold was found and seized in these two assessee's cases respectively. The excess jewellery seized was treated as unexplained investment in jewellery and completed the assessments. On appeal, the Commissioner of Income Tax (Appeals) confirmed the assessments made....

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....llant as well as the family size (2 sons and 1 daughter apart from his wife) coupled with the circular/instruction of the Board in Instruction No.1916 (F.No.286/63/93-IT (INV-II) dated 11.05.1994 the addition on the facts of the case is not sustainable and accordingly the Appellant prays for the deletion on the said different ground and thus render justice. The decision reported in 339 ITR 351 at page 5, the action of the Income Tax Appellate Tribunal in deleting the value of the excess jewellery based on the above mentioned board circular is approved and not faulted with by the High Court. Similarly the decision of the MP.High Court reported in 11 DTR 169 had held that            ....

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....ithout explaining as to how it is so. According to the appellant, there is no excess unaccounted jewellery. The Assessing Officer has clearly stated that excess gold jewellery is unexplained. As has been stated in the assessment order, the appellant has furnished bank guarantee for this jewellery, but has not furnished an explanation for the same, making it unexplained. 8. So far as the reliance placed on the circular as well as the decision of Hon'ble High Court of Gujarat in the case of Rattanlal Vyaparilal Jain, firstly the circular referred to is a guideline for seizure of jewellery and ornaments. It does not automatically lead to a conclusion that what need not be seized can be taken as explained. In the decision of the Hon'....