TMI Blog2014 (9) TMI 322X X X X Extracts X X X X X X X X Extracts X X X X ..... ms per unmarried lady and 100 gms per male member of the family, need not be seized - in the case of a wealth-tax assessee, gold jewellery and ornaments found in excess of the gross weight declared in the wealth-tax return can be seized - this is only an enabling provision and will be applicable if there are circumstances to come to the conclusion that the status of the family and custom and practices of the community require holding of such jewellery - the assssees have not given any such explanation either before the Original Authority or the First Appellate Authority or the Tribunal - there no justification to interfere with the order of the Tribunal and no substantial question of law arises for consideration – Decided against assessee. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng the scope of the said circular in order to consider the source for the disputed excess jewellery on the facts and in the circumstances of the case? 2.1. The brief facts of the case are as under: The assessees filed their original return of income for the assessment year 2009-2010 on 30.9.2009. The Assessing Officer, after conducting search in terms of Section 132 of the Income Tax Act (for brevity, the Act ), reopened the assessment after issuing notice under Section 153A of the Act and such reassessment was completed under Section 143(3) of the Act on 29.12.2010. The Assessing Officer, while completing the assessments, found excess gold jewellery of 242.200 Grams and 331.700 Grams and seized it from the assessees respectively and su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessees before the Commissioner of Income Tax (Appeals) as well as the Tribunal did not find favour with the said authorities. 5. For better appreciation of the issue involved in these cases, it would be appropriate to refer to the Board Instruction No.1916 [F.No.286/63/93-IT (INV.II)], dated 11.5.1994, which reads as under: Instruction No.1916 [F.No.286/63/93-IT (INV.II)] Guidelines for seizure of jewellery and ornaments in course of search 11.5.1994 SEARCH SEIZURE SECTIONS 132, Instances of seizure of jewellery of small quantity in course of operations under s.132 have come to the notice of the Board. The question of a common approach to situations where search parties come across items of jewellery, has been ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed to tax as unexplained investment in jewellery. However, we find that there are no detailed reasons given by the Original Authority for assessing the excess gold jewellery as unexplained investment. 8. The Commissioner of Income Tax (Appeals) as well as the Tribunal came to hold that since there was no explanation offered by the assessees before the Assessing Officer or Commissioner of Income Tax (Appeals) or Tribunal, their mere placing reliance on the Board Instruction No.1916 [F.No.286/63/93-IT (INV.II)], dated 11.5.1994 will be no avail. In fact, the Commissioner of Income Tax (Appeals) has correctly held that the Board Instruction does not make allowance in calculation of unexplained jewellery and it only states that in the case o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ere it need not be seized. It does not state that it should not be treated as unexplained investment in jewellery. In this case, the Original Authority has correctly included the excess jewellery other than what has been found in the wealth tax assessment as unexplained investment in jewellery and demanded tax and penalty. We find no error in such order passed by the Assessing Officer, which was confirmed by the Commissioner of Income Tax (Appeals) and Tribunal. In fact, in paragraph (6) of the order of the Tribunal, it is held as under: 6. On going through the order of the Commissioner of Income Tax (Appeals), we find that the assessee has not offered any explanation either before the Assessing Officer or the Commissioner of Income Tax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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