| Question And Answer | |
|---|---|
| Subject: | Explanation for jewellery found and seized |
| Category: | Income-Tax |
| Querist: | Prakash |
| Answered by: | KSA Legal Chambers |
| Tags: | family members, Jewelllery, search assessment |
| Date: | September 5, 2023 |
During the course of search jewellery weighing 5646.800 gms was found which was of Gold and also some dimonds. Family of assessee consist of 18 members which includes 10 married ladies , 5 individual, 3 unmarried daughter and one adult son. Assessee submitted that considering CBDT circular about seizing of jewellery, no jewellery is to be seized , however still Investigating Officer has seized 1646 gms on the ground that all the family members are though living in same building but are having separate kitchen hence all jewellery could be considered as explained. During assesssment proceedings have once again asked the explosion and source of entire jewellery found, will bills and matching of item to item with jewellery found as well as seized and show cause as to why entire jewellery should not be considered as unexplained and added u/Sec 68/69A of the Act.
Is action of AO is correct? What reply assessee can give, considering CBDT Cir and as none of the assessee has filed return under wealth tax act.
The action of the Assessing Officer is not justified . The assessee has to offer proper explanation . In CIT v. Ratanlal Vyaparilal Jain (2011) 199 Taxman 90 / 339 ITR 351 / (2010) 235 CTR 568 / 45 DTR 290 (Guj.)(High Court) the court held that the CBDT circular had been issued for the purpose of non seizure on the basis of recognized customs prevailing in Hindu Society and unless the revenue showed anything to the contrary, it could safely be presumed that source to extent as stated in Circular No. 1916 stands explained, accordingly the order of Tribunal deleting the addition was confirmed. In case the assessee is not able to get the evidences as to purchase or acquisition of the jewellery , the assessee can support the acquisition of jewellery by filing a proper affidavit .