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2002 (8) TMI 52 - HC - Income TaxAppeal To CIT(A) - it is crystal clear that the directions were limited on making fresh assessment or to give effect to the order of the Commissioner of Income-tax (Appeals). The Assessing Officer while making the fresh assessment has gone beyond the directions given by the Commissioner of Income-tax (Appeals) and had valued the jewellery which was seized by the Customs authority from the bank locker of Smt. Radha Devi the mother of the assessee. The Commissioner of Income-tax (Appeals) in the second round has confirmed the view taken by the Assessing Officer without realising the fact that the direction in the first round of proceeding was limited. - When the direction of the Commissioner of Income-tax (Appeals) in the point of first round was limited for valuing the jewellery which was available to the Assessing Officer at the time of original assessment made on March 27 1991 and when the jewellery which was found in the locker of Smt. Radha Devi was not the subject-matter of the original assessment and there was no direction of the Commissioner of Income-tax (Appeals) in respect of the jewellery found in the locker of Smt. Radha Devi. - The Assessing Officer has committed error in fresh assessment in taxing the jewellery which was not the subject-matter of the original assessment. Therefore we find no infirmity in the order of the Tribunal. In the result the appeal stands dismissed.
Issues:
1. Valuation of jewellery seized during search operation. 2. Addition of jewellery found in the locker of mother of the assessee in the assessment. 3. Interpretation of directions given by the Commissioner of Income-tax (Appeals) for valuation of jewellery. Valuation of Jewellery Seized During Search Operation: The case involved a search operation in the residential premises of the assessee where cash, gold ornaments, and jewellery were seized. The assessee made a surrender of income during the search. The Assessing Officer initially assessed the total income based on one-third of the total seized items. However, the Commissioner of Income-tax (Appeals) found discrepancies in the valuation of jewellery and directed the Assessing Officer to revalue the ornaments with an approved valuer. The Tribunal upheld this direction, emphasizing the need for proper valuation before making any additions to the income. Addition of Jewellery Found in the Locker: In addition to the jewellery seized during the search, jewellery found in the locker of the mother of the assessee was also assessed by the Income-tax Officer in the fresh assessment. The Commissioner of Income-tax (Appeals) and the Tribunal differed on whether this jewellery, not part of the original assessment, should be included in the income of the assessee. The Tribunal held that the Income-tax Officer exceeded the directions given by the Commissioner of Income-tax (Appeals) by assessing this additional jewellery, leading to the deletion of the addition. Interpretation of Directions for Valuation of Jewellery: The Commissioner of Income-tax (Appeals) had specifically directed the valuation of jewellery available at the time of the original assessment. The Tribunal emphasized that the directions were limited to the jewellery before the Assessing Officer during the original assessment. Assessing Officer's inclusion of jewellery found in the locker of the mother of the assessee in the fresh assessment was deemed erroneous, as it was not part of the original assessment or covered by the Commissioner's directions. The Tribunal upheld the view that the directions were specific and did not extend to jewellery not previously considered, leading to the dismissal of the appeal. In conclusion, the judgment highlighted the importance of adhering to specific directions given by the appellate authorities and ensuring that assessments are limited to the scope defined in such directions. The Tribunal's decision to delete the addition of jewellery found in the locker of the mother of the assessee underscored the need for assessments to align with the parameters set by higher authorities.
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