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Section 69A of the Income-tax Act, 1961 - Unexplained moneys (Jewellery) - Assessment year 1987-88 - Whether, in terms of section 69A, assessee would be treated in possession of jewellery, from date of opening of locker, i.e., when jewellery was found and seized by revenue, and would be added to his income accordingly - Held, yes [Paras 9 & 7.1] [In favour of revenue] FACTS â–  A search action under section 132 on 19-3-1986 was carried out at assessee's premises where a locker key belonging to assessee's aunt was seized. On 28-7-1986, the locker of assessee's aunt was opened by the revenue. The jewellery valued in the aggregate of Rs. 2.53 lakhs was found in her locker from which jewellery valued at Rs. 2.41 lakhs was claimed to be belonging to the assessee. The assessee submitted that said jewellery was received as gift by him from one 'D'. â–  The Assessing Officer did not accept the assessee's explanation of source of the jewellery found. Consequently, he added the cost of the jewellery as deemed income under section 69A. â–  The Commissioner (Appeals) upheld Assessing Officer's order. â–  On appeal, it was submitted by assessee that the addition of deemed income under section 69A to be made on account of jewellery found on opening of the locker on 28-7-1986 could only be made in the assessment year 1986-87 and not for the relevant assessment year. However, the Tribunal upheld Assessing Officer's order. â–  On appeal: HELD â–  Section 69A provides that where in any financial year, an assessee is found to be the owner of any jewellery which is not recorded in the books of account and the explanation offered by assessee about the nature and source of acquisition is not satisfactory, then value of such jewellery would be deemed to be income of the assessee in the year in which the assessee was found to be the owner of the jewellery. Admittedly, the locker key which was seized by the department during the course of the search on 20-3-1986, did not belong to the assessee. Thus, on that date the quantum of jewellery in the locker of, aunt of assessee which belonged to the assessee could not be ascertained/forecast. The normal…

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