2 months ago
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The Madras High Court has directed the Income Tax Settlement Commission to reconsider Khazana Jewellery’s colony exertion with respect to 268 kg of golden banal held by its employees, goldsmiths and agents but had not been disclosed voluntarily for the intent of paying income taxation successful 2016.
First Division Bench of Chief Justice Manindra Mohan Shrivastava and Justice G. Arul Murugan acceptable speech the colony commission’s June 2020 rejection bid and directed it to reconsider the petition afresh since different the jewellery steadfast would person to wage penalty, involvement and look prosecution too.
The absorption was issued portion allowing a writ entreaty filed by the jewellery firm, represented by its Managing Director Kishore Kumar Jain, against a azygous judge’s November 28, 2025 bid refusing to interfere with the colony commission’s determination connected the crushed that determination was nary afloat and existent disclosure.
Income Tax section elder lasting counsel A.P. Srinivas brought it to the announcement of the tribunal that Khazana Jewellery Private Limited was a intimately held institution based successful Chennai. Mr. Jain was the Managing Director and his household members were the different directors of the company.
In April 2016, the I-T sleuths carried retired a hunt cognition during which Mr. Jain admitted to person inflated the refinery loss, siphoned disconnected the excess golden and sold it successful achromatic market. He besides gave a connection that the magnitude earned owed to ostentation of the refinery nonaccomplishment was astir ₹70.66 crore successful the past six years.
Subsequently, successful 2018, helium filed a colony exertion with respect to ₹70.66 crore and besides for an further income of ₹80 crore towards towards 268 kg of bullion held by its employees, goldsmiths and agents. He offered to wage income taxation for them astatine the complaint of 30% by classifying them arsenic concern income.
The Settlement Commission judge the exertion with respect to ₹70.66 crore since the root of earning specified an income done ostentation of refinery nonaccomplishment had been disclosed. It, however, rejected the colony plea with respect to ₹80 crore by stating that determination was nary afloat and existent disclosure.
During the proceeding of its writ petition earlier the azygous judge, the jewellery steadfast had offered to wage adjacent 60% taxation nether Sections 69B and 115BBE of the Income Tax Act, 1961 but Mr. Srinivas said, specified an connection ought to person been made earlier the colony committee and not earlier the court.
However, portion proceeding the writ entreaty against the azygous judge’s order, the Bench led by the Chief Justice held that the colony committee had not considered the jewellery firm’s exertion decently and therefore, the contented required reconsideration.
