TaxTMI 
TaxTMI 
2026 (10) TMI 271
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....ort 'the Act'). 2. The assessee has raised the following grounds in appeal: 1. That the order dated 28-05-2021 is not digitally signed on 28-05- 2021 and unsigned order has no legal authority. The Assessment order was passed in violation of office procedures, as on the basis of unsigned order, entries were made in demand and control register, That the Ld. AO has passed the said order in violation of office procedures which specifically states in para5.1 (XX) at page no.37 of Manual of office procedure, Volume-II (Technical) issued by the Directorate of Income Tax, (Organisation and Management Services) CBDT Department of Revenue GOI that the AO shall perform the following tasks simultaneously:-a) sign the Assessment order, Deman....
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....ter the hearing of the case. 3. The brief facts of the case are that the assessee filed his original return of income declaring total income of Rs. 12,24,260/-. The return was processed under section 143(1) of the Act on 24-01-2020. A search under section 132 of ACT was conducted at the business premises of M/s Faquir Chand Lockers and Vaults Private Limited. During the course of search, it was found that there were 300 lockers in the name of different persons mostly belonging to nearby business entities. In these lockers one locker No. 371 was allotted in the name of Shri Vikas Lalan, accordingly a search warrant issued in the name of the assessee and executed on 01- 12-2018. During the search 2088.78gms jewellery of worth Rs. 63,93,594....
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....nation offered by him is not, in the opinion of the Assessing Officer, satisfactory, the money and the value of the bullion jewellery or other valuable article may be, deemed to be the income of the assessee for such financial year". In the instant case, Shri Vikas Jalan has been found to be the owner of jewellery /gold/coin /bullion worth of Rs. 63,93,594/- from the locker No. 371 owned by him is his personal capacity and thus the jewellery /gold coin /bullion of the assessee Shri Vikas Jalan represent unexplained jewellery /gold coin/bullion of the assessee and his represent individual hand as per provisions of Section 69A of the Act. The CBDT circular no.1916 dated 11-05- 1994 pertains to guidelines for seizure during search under wealth....
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....roves that these jewelleries are old and belonging to the assessee and his family. 6. The Ld. AR of the assessee further submitted that assessee has explained the seized jewelleries and proved that these belong to the assessee and his family. It was also submitted that as per the social custom and practices in India, whereby jewellery is gifted by the family members on the occasion of marriage, birthday, and auspicious occasion and such acquisition of jewellery cannot be supported by the bills and vouchers. Reliance is placed the decision of Ashok Chadha 337 ITR 399(Del), in this case the Hon'ble Delhi High Court held that it is a normal custom for woman to receive jewellery in the from of "stree dhan" or on other occasions such as birth....
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....ly members. The assessee also filed the valuation report of the Government approved valuer, in the name of Ritika and Vikas Jalan and this report proves that the jewellery is old. The valuation reports are for the year 2001 & 2009. Thus, the jewellery which was found in the locker of the assessee during the search, was old jewelleries and ancestral inheritance and also gifted 20-30 years ago. Apart from that, even if we go to the CBDT instruction no.1916 which was subject matter of interpretation by the court in the case of CIT v Ghanshyam Das Johri 41 taxmann.com 295 (All), the court has held that CBDT instruction should be taken as guiding factor of presuming assessee to the extent of limit prescribed for the family members should be trea....
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....of Ashok Chadha v. ITO 14 taxmann.com 57(Delhi) held as under: 3. Learned Counsel for the respondent on the other hand relied the reasoning given by the authorities below. After considering the aforesaid submissions we are of the view that addition made is totally arbitrary and is not founded on any cogent basis or evidence. We have to keep in mind that assessee was married for more than 25-30 years. The jewellery in question is not very substantial. The learned counsel for the appellant/assessee is correct in her submission that it is a normal custom for woman to receive jewellery in the form of "stree dhan" or on other occasions such as birth of a child etc. Collecting jewellery of 906.900 grams by a woman in a married life of 25....