2026 (4) TMI 1780

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....d by the Assessee against the Assessment Order passed by the Joint Commissioner of Income tax (OSD),Central Circle - 1(3), Bangalore (the Ld. Assessing Officer) u/s. 143(3) of the Income Tax Act, 1961 (the Act) dated 18.06.2021 was partly allowed. 2. The only grievance of the Assessee is that Assessee has not been granted the benefit of Board Circular no. 1916 dated 11.05.1994 for the purpose of Income Tax Assessment. 3. The briefly stated fact shows that the Assessee is an individual partner in M/s. Raghuram Enterprises carrying on the business of wholesale trading of rice and wheat. The return of income was filed on 24.10.2019 at a total income of Rs. 34,42,920/-. 4. The search took place on 20.02.2019 on the basis of warrant in ....

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.... applies only for the purpose of seizure and not for taxing of the income. Accordingly, the Assessment Order was passed u/s. 143(3) of the Act on 18.06.2021 determining the total income of the Assessee at Rs. 1,38,06,590/-. 7. Aggrieved with the same, the Assessee preferred an Appeal before the Ld. CIT(A). The main argument of the Assessee is that instruction no. 1916 dated 11.05.1994 also applies to the taxation of jewelry found in the course of search. He submits that if the jewelry is found in the limits prescribed under that instruction, should not have been added to the total income of the Assessee. 8. Ld. CIT(A) rejected the same. Therefore, Assessee is in appeal. 9. We have heard the Ld. Counsel Shri V. Srinivasan; Advocate ....

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....tice of the CBDT and based on that guidelines were issued. It was stated that in case of a person not assessed to wealth tax, jewelry and ornaments to the extent of 500 grams for married lady and 250 grams for unmarried lady and 100 grams for male member of the family need not be seized. It is further provided that the Authorized Officer, having regard to the status of the family, customs and practices of the community to which the family belong, and other circumstances of the case may decide to exclude larger quantity of jewelry from seizure. Therefore, the above instructions give a standard deduction irrespective of the status of the family, customs and practices of the community to the extent of above jewelry. Further, relief from seizur....