ASHOK CHADDHA Vs. INCOME TAX OFFICER

JUDGEMENT

(1.) Admit on the following substantial questions of law:-

(2.) A search and seizure operation under section 132(1) of the Income-tax Act, 1961 (hereinafter referred to as the Act) was conducted in the case of Dilbagh Rai Group on 1st September, 2005 and 28th September, 2005. This search covers the residential premises of the appellant as also his locker No. 476 at Union Bank of India, Naraina. During the search, apart from some cash and jewellery, loose papers/documents were also found seized.

(3.) Learned Counsel for the respondent on the other hand relied upon the reasoning given by the authorities below. After considering the aforesaid submissions we are of the view that addition made is totally arbitrary and is not founded on any cogent basis or evidence. We have to keep in mind that the assessee was married for more than 25-30 years. The jewellery in question is not very substantial. The learned counsel for the appellant/assessee is correct in her submission that it is a normal custom for woman to receive jewellery in the form of "stree dhan" or on other occasions such as birth of a child etc. Collecting jewellery of 906.900 grams by a woman in a married life of 25-30 years is not abnormal. Furthermore, there was no valid and/or proper yardstick adopted by the Assessing Officer to treat only 400 grams as "reasonable allowance" and treat the other as "unexplained". Matter would have been different if the quantum and value of the jewellery found was substantial.