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TMI Blog2024 (5) TMI 594X X X X Extracts X X X X X X X X Extracts X X X X ..... to which the family belongs and other circumstances of the case decide to exclude a larger quantity of jewellery and ornaments from seizure. Para (iv) makes it clear that a detailed inventory of the jewellery and ornaments found must be prepared to be used for assessment purposes. Thus, the purport of the above circular is confined only at the stage of investigation of seizure and not to the stage of assessment. Therefore the complaint of the petitioner that the circular has not been followed cannot be countenanced. Under these circumstances, no case is made out for interfering with the impugned order. However, liberty is given to the petitioner to pursue the alternate remedy before the Appellate Commissioner in terms of Section 246A of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rest, the appellant has accepted the difference as unaccounted investment vide Q.5 in sworn statement at the time of search. I find the decision of the A.O reasonable and no need to interfere with his order except, on the addition proposed on account of making charges uniformly applied at the rate of 5%. It is noted that in the inventory of jewellery prepared at the time of search there are items of gold bar and gold coin that do not require any making charges. The making charges have to be accordingly reduced. The appellant gets relief to that extent. 5. In nutshell, the appeal of the assessee is partly allowed." 4. Aggrieved by the same, the petitioner had filed ITA.No. 3428/CHNY/2019. The aforesaid appeal of the petitioner came to be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce was made to the decision of the Rajasthan High Court in CIT Vs. Satya Narain Patni reported in (2014) 46 taxmann.com 440 and the decision of Allahabad High Court in CIT Vs. Ghanshyam Das Johri reported in (2014) 41 taxmann.com 295. 8. The learned Senior Counsel for the petitioner would further submit that if CBDT Instruction 1916 dated 11.05.1994 was followed, there is nothing further to be explained. It is submitted that the petitioner has explained the facts clearly. However, the respondent has failed to consider the same and thus, passed the impugned order, which is liable to be quashed. 9. Defending the impugned order, the learned Standing Counsel for the respondent would submit that the petitioner has an alternate remedy before th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... observed that the purchase of gold jewellery [gold weighing 5781.04 grams and diamond of 12.66 carats] from A.Y. 2010-11 to A.Y. 2015-16 were made from income, which has been disclosed for Income Tax purposes. The weight of gold jewellery, the source for purchase of which remains to be explained is 1099.96 grams. 12. In connection with the gold of 1099.96 grams of gold, the source for purchase of which remains to be explained, the assessee has submitted vide letters dated 18.03.2024 and 19.03.2024 requesting the undersigned to consider the Instruction No.1916 of CBDT in F. No. 286/63/93-IT (Inv.II) dated 11/05/1994. 13. The learned Standing Counsel reiterates that in the aforesaid instruction of CBDT, dated 11.05.1994 bearing Ref.No.286/6 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the status of the family and the customs and practices of the community to which the family belongs and other circumstances of the case, decide to exclude a larger quantity of jewellery and ornaments from seizure. This should be reported to the Director of Income-tax/Commissioner authorising the search all the time of furnishing the search report. (iv) In all cases, a detailed inventory of the jewellery and ornaments found must be prepared to be used for assessment purposes." 17. Para (iii) of the aforesaid circular makes it clear that the Authorized Officer may having regard to the status of the family and the customs and practices of the community to which the family belongs and other circumstances of the case decide to exclude a l ..... X X X X Extracts X X X X X X X X Extracts X X X X
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