December 2022
Search and seizure — Release of seized assets — Unexplained investment — Gold jewellery seized from third party — Findings of fact recorded by Commissioner (Appeals) that purchase of gold by assessee duly substantiated by evidence and finding attaining finality — Seized gold to be released to assessee.
By K. B. Bhujle, Advocate
63. Rakeshkumar Babulal Agarwal vs. Principal CIT[2022] 448 ITR 133 (Guj.)
A.Y.: 2018-19
Date of order: 7th March, 2022
Ss. 69, 132, 143(3) and 153C of ITA,1961
Search and seizure — Release of seized assets — Unexplained investment — Gold jewellery seized from third party — Findings of fact recorded by Commissioner (Appeals) that purchase of gold by assessee duly substantiated by evidence and finding attaining finality — Seized gold to be released to assessee.The assessee carried on business in gold jewellery. Pursuant to a search carried out in the case of one S u/s 132 of the Income-tax Act, 1961, and in the case of one P, the gold jewellery received through courier by the assessee as consignee was also seized by the Department. The AO passed an assessment order against the assessee u/s 143(3) r.w.s.153C for A.Y.2018-19 making an addition on account of unexplained investment u/s 69 of the value of seized gold jewelry received through courier by the assessee as consignee. The assessee stated he had purchased the gold from P.
The Commissioner (Appeals) on the facts found that the assessee had purchased the gold from P and the payment was made through banking channels, that the purchases were recorded in the assessee’s books of account, and that though P in his statement had denied any transactions with the assessee, the assessee had provided the necessary supporting documents and had duly recorded the pu
