2022 (8) TMI 483

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.... and in law, the learned Commissioner of Income-tax (Appeal) erred in not treating the search action as illegal and bad in law. The learned Commissioner of Income-tax (Appeal) erred in not holding that the assessment order passed by the assessing officer is bad, illegal & without jurisdiction. The said proceeding is illegal, without jurisdiction and bad in law. 2.1. On facts and circumstances of the case and in law learned CIT (Appeals) erred in confirming arbitrarily the addition of Rs.22,31,445/- being not treating the jewelry found in locker as the stock in trade of the appellant. Addition is confirmed arbitrarily ignoring the facts and merits of the case and is bad in law and the same needs to be deleted ; 2.2 The Lear....

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....d that the lockers were given on rent to hawala operators involving an illegal transfer of cash. Consequent to search and seizure action in case of Gold Sukh, the case of Shri Sanjay Kunmar Sharma was also covered by way of service of warrant under section 132 of the Act. The case of the assessee was also covered in view of locker No.237 at M/s. Samriddhi Safe Deposit Vaults Pvt. Ltd., 49, Dhanji Street, Mumbai - 400 003. On search, ornaments worth Rs.70,10,799/- were found from the said locker. Shri Sanjay Kunmar Sharma stated that the said locker was owned and operated by Shri Rameshkumar H. Jain, the assessee. The statement of Shri Sanjay Kunmar Sharma was recorded on 09.11.2012. Therefore, the AO served the notice to the assessee and af....

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....o 2012-13. The account balance sheet and ITR were accepted for those years. Closing stock was also accepted in these years also. The demand raised was on the basis of return of income. The statement recorded under section 132(4) dated 09.11.2012 while giving the answer to question No.18, the assessee has accepted the jewellery worth Rs.28 lakhs that includes stock of business as he was operating the business on small scale basis. The AO did not consider the statement of the assessee and also did not consider the capital gain, balance sheet, ITR and passed assessment order under section 153C read with section 143(3) of the Act. The Ld. CIT(A) did not consider the same because the assessee was not having the place of business and the stock wa....