Jyoti Cariappa Saikia Vs ACIT (ITAT Delhi)
The assessee appealed before the ITAT Delhi against the order of the Commissioner of Income Tax (Appeals) [CIT(A)] for Assessment Year 2021-22, challenging proceedings initiated under section 153C of the Income-tax Act as well as the addition sustained under section 69A in respect of jewellery found during a search. The CIT(A) had granted partial relief by deleting part of the addition while sustaining an addition of ₹18,11,026 towards alleged unexplained jewellery.
The assessee raised legal grounds contending that the proceedings under section 153C were invalid because no incriminating material belonging to or relating to the assessee was found from any other searched person. It was argued that the jewellery had been found at the assessee’s own residence during the search and that, if at all, proceedings could only have been initiated under section 153A. The assessee also challenged the validity of the satisfaction note and the sustenance of the addition under section 69A, contending that the jewellery represented inheritance, streedhan, and jewellery accumulated over time.
The facts showed that a search under section 132 was conducted on the Triburg Group on 4 March 2021, during which the assessee’s residence was also searched. A notice under section 153C was issued after recording a satisfaction note, and the Assessing Officer completed the assessment by making an addition of ₹53,80,000 under section 69A on account of unexplained jewellery found during the search. The CIT(A) subsequently granted relief of ₹35,68,974 but sustained an addition of ₹18,11,026, leading to the present appeal.
