1 IN SUPREME COURT OF INDIA CIVIL APPELLATE JURISDICTION CIVIL APPEAL NO.5216/2008 M/S.N.K.JEWELLERS & ANR. Appellant(s) VERSUS COMMISSION OF INCOME TAX, NEW DELHI Respondent(s) ORDER present appeal arises out of order dated 23rd February, 2007 in ITA No.236/2007 passed by Delhi High Court whereby High Court has held that no substantial question of law arose for its consideration and it was merely matter decided on evidence on record. We have heard learned counsel for parties. On perusal of impugned order, we find that on 27.05.2000 employee of appellant was returning from Amritsar by train No.2030, Swarn Shatabdi Express and he was found in possession of Rs.30 lacs cash in search by Railway Police. SHO, GRP Station, Jalandhar after making enquiries from concerned employee registered case under Sections 411/414 of Indian Penal Code on 27.05.2000. report written by SHO, GRP is as follows: Signature Not Verified Digitally signed by ASHA SUNDRIYAL Date: 2017.09.20 16:21:03 IST accused is working for 5-6 months Reason: with his cousin (Bhua's son) Shri Neeraj Kumar who is running jewellery shop in 2 Shop No.2230, Usha Market, Kinari Bazar, Old Delhi. Shri Neeraj Kumar is resident of D-271, Nirman Vihar, Delhi. On 26.5.2000 he got reserved his onward and inward journey for 27.5.2000 in Train No.2029 up and 2030 down, Shatabdi Express and on 27.05.2000 in morning he carried 40 biscuits of gold each weighing 116 grams reached Amritsar through Shatabdi Express and by hiring three wheeler reached Shakti Nagar Chowk where Babbu Jeweller met him and took him to his residence near Shakti Nagar Chowk. He gave Mr. Babbu 40 gold biscuits and in return received cost of 40 gold biscuits and previous balance totaling in all to Rs.30 lacs. He started from Amritsar to Delhi by 2030 down Swaran Shatabdi Express and was produced before you by Escort-in-Charge of train. gold biscuits were given by Shri Neeraj Kumar and money was also to be given to him. said information was received by Investigation Unit, Jalandhar from SHO, GRP Station Jalandhar on 29.05.2000. Warrant of authorisation u/s 132A of Income Tax Act, 1961, (hereinafter referred to as Act), was obtained from Director of Income Tax, Ludhiana and cash of Rs.30 lacs was requisitioned on 03.06.2000 and seized. Proceeding for assessment for block period from 01.04.1991 to 3 03.06.2000 under Section 158BD of Act was initiated. explanation of appellant before Assessing Authority was that his employee had gone to Amritsar to make some purchases of gold but transaction did not materialize. Assessing Officer was of view that amount represented sales of gold made by appellant on earlier occasions and sale proceeds were being carried back to Delhi. After considering statements of various persons and other material on record, authorities came to conclusion that it was concealed income and accordingly appellant was assessed to tax. Before us learned counsel for appellant submitted that proceedings initiated under Section 132 of Act were invalid for reason that it cannot be based on search conducted on train by police authorities and, therefore, proceedings initiated for block assessment period 1st April, 1991 to 3rd June, 2000 are without jurisdiction. This plea was not raised by appellant before any of authorities. Further, we find that in view of amendment made in Section 132A of Income Tax Act, 1961 by Finance Act of 2017, 'reason to believe' or 'reason to suspect', as case may be, shall not be disclosed to any person or any authority 4 or Appellate Tribunal as recorded by Income Tax Authority under Section 132 or Section 132A. We, therefore, cannot go into that question at all. Even otherwise, we find that explanation given by appellant regarding amount of cash of Rs.30 lacs found by GRP and seized by authorities has been disbelieved and has been treated as income not recorded in Books of Account maintained by it. In view of above, we do not find infirmity in order passed by High Court. Accordingly, Civil Appeal is dismissed. J. [R.K. AGRAWAL] .J. [DR. D.Y. CHANDRACHUD] NEW DELHI; SEPTEMBER 13, 2017. 5 ITEM NO.105 COURT NO.8 SECTION XIV SUPREME COURT OF INDIA RECORD OF PROCEEDINGS Civil Appeal No.5216/2008 M/S.N.K.JEWELLERS & ANR. Appellant(s) VERSUS COMMISSION OF INCOME TAX, NEW DELHI Respondent(s) Date : 13-09-2017 This appeal was called on for hearing today. CORAM : HON'BLE MR. JUSTICE R.K. AGRAWAL HON'BLE DR. JUSTICE D.Y. CHANDRACHUD For Appellant(s) Mr. Y.K. Kapur, Adv. Ms. Mahua Kalra, AOR Mr. Bhushan Kapur, Adv. For Respondent(s) Mr. Rana Mukherjee, Sr. Adv. Mr. Arijit Prasad, Adv. Ms. Swarupama Chaturvedi, Adv. Ms. Anukanksha S. Kalkeri, Adv. Mrs. Anil Katiyar, AOR Mr. B. V. Balaram Das, AOR UPON hearing counsel Court made following ORDER Civil Appeal is dismissed in terms of signed order. Pending application, if any, stands disposed of. (ASHA SUNDRIYAL) (CHANDER BALA) COURT MASTER COURT MASTER (Signed order is placed on file) N.K. Jewellers & Anr. v. Commission of Income-tax, New Delhi