TaxTMI 
TaxTMI 
2019 (11) TMI 627
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....IT(A) is in violation of principles of natural Justice and bad in law. 4. The appel lant craves leave to add to, amend, alter or delete al l or any of the foregoing grounds of appeal." 2. Briefly stated, search and seizure proceedings under Sec. 132(1) of the Act, were conducted on 24.09.2013 in the case of Anand Rathi Group and its group concerns. The assessee who is an employee with M/s Amit Capital and Securities Pvt. ltd., which is engaged in the business of share broking, merchant banking activities, financial advisory and depository services was also covered under the said search and seizure operations. The assessee had e-filed his return of income for A.Y 2014-15 on 01.11.2014, declaring total income of Rs. 18,36,980/-. 3. During the course of the search and seizure proceedings, diamond/gold jewellery was found/seized from the residential premises and bank lockers belonging to the assessee and his wife, namely Mrs. Poonam Pongalia, as under : Particulars of premises Gold Jewellery Valuation of Diamond jewellery (in Rs. 0 Valuation of silver ware (in Rs.) Total value (in Rs.) Weight in grams Valuation (in Rs. 0 Residence 446.060 8,98,881 3,60,469 2,20,000 14,....
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....ewellery items. As is discernible from the orders of the lower authorities, the assessee had failed to produce any credible documentary evidence in support of his claim as regards the source of acquisition of the aforesaid gold jewellery weighing 1846.46 gms that was found from his residence/lockers during the course of the search proceedings. However, the search officials taking cognizance of the fact that there were two married ladies, two male members and one unmarried lady in the assesses family, therefore, in conformity with the CBDT Instruction No. 1916, treating 1450 gms of gold jewellery as acquired by the assessee and his family from their disclosed sources, thus, seized only the balance 564.80 gms of gold jewellery. Also, the entire diamond jewellery of a value of Rs. 15,61,800/- that was found from the assesses locker no. 324 with State Bank of Bikaner & Jaipur was also seized. 4. During the course of the assessment proceedings the A.O called upon the assessee to explain the source of the jewellery found during the course of the search and seizure proceedings, alongwith supporting documents to substantiate his claim. In reply, it was submitted by the assessee, as under ....
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....counted money. In view of the above, it is prayed that none of the jewellery found in case of my family can be treated as out of undisclosed sources. Without Prejudice to the above, we would like to rely on the Instruction No. 1916 (F.No.286/63/93 - IT (Inv -II) (copy enclosed), it is submitted that we have prepared a consolidated chart explaining the total Gold Jewellery found during the course of search as shown above. It is to clarify that the details of my family members are as under: Girish Pungalia - Self 100 gms. Poonam Pungolia - Wife 500 gms. Jamku devi Pungalia - mother 500 gms. Master Hitesh Pungalia - Son 100 gms. Vidhi Pungalia - Daughter 250 gms. 1450 gms It is submitted that considering the gold jewellery found at Residence and locker which is aggregating to 1846.46 grams, it is submitted that as per the circular the jewellery is exceeding with 396 grams only which is purchased of out of my taxable income from time to time (bills are enclosed). In view of above I also pray to release jewellery seized from bank locker at the time of search. I also request you to release a sum of Rs. 4,35,900/- and Rs. 98,000/- deposited with income tax autho....
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....ould not be treated as an unexplained investment, however, did not find favour with the A.O. In fact, the A.O was of the view, that now when the benefit of Instruction no 1916 of CBDT was given to the assessee, therefore, in the absence of any supporting documentary evidence to substantiate the source of acquisition of the balance excess jewellery weighing 230.25 gms no further benefit could be given to him. As regards the diamond jewellery of Rs. 23,58,117/- that was found during the course of the search proceedings, the same was also treated by the A.O as an unexplained investment in the hands of the assessee. On the basis of his aforesaid observations the A.O made an addition of Rs. 29,26,148/-viz. (i) Gold jewellery (230.25 gms) : Rs. 5,68,031/-; and (ii) Diamond Jewellery :Rs. 23,58,117/-, by treating the same as an unexplained investment in the hands of the assessee. 5. Aggrieved, the assessee carried the matter in appeal before the CIT(A). However, the CIT(A) after deliberating on the contentions advanced by the assessee was not persuaded to accept the same. It was observed by the CIT(A) that the A.O had already granted the requisite benefit and, had held the gold jewellery....
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....d the orders of the lower authorities and the material available on record. Admittedly, the gold jewellery weighing 1846.46 gms was found from the residential premises/lockers of the assessee during the course of the search proceedings. Apart there from, diamond jewellery worth Rs. 15,61,800/-was also found and seized from the locker no. 324 of the assessee with State Bank of Bikaner & Jaipur. As regards the source of acquisition of the jewellery was concerned, we find, that the assessee on the basis of supporting purchase bills could substantiate purchase of only three gold bars having an aggregate weight of 166.21 gms, which were purchased by him vide cheque payments on three occasions from a jeweller viz. M/s Suneel Kumar R. Aggarwal, 60A Kavi Nirav Gali, Shop No. 12, Jhavery Bazar, Mumbai. As is discernible from the orders of the lower authorities, the A.O observing that there were two married ladies, two male members and one unmarried lady in the family of the assessee, had thus, by drawing support from the CBDT Instruction No. 1916 observed, that jewellery weighing 1450 gms could safely be held as having been acquired by the assessee and his family members from explained sour....