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2014 (2) TMI 1327 - AT - Income TaxAddition on account of unexplained jewellery and silver articles found during the course of search - Held that:- In the present case, it is noticed that the statement of the assessee was recorded during the course of search and the assessee stated that the firm is compendious name for partners and acts through the partners, therefore, the income may be utilized by the partners in the assets of the firm itself. It is not in dispute that the assessee surrendered the income of ₹ 21 lacs in the hands of the firm and claimed that the realization of the stock found short in the firm was utilized for purchasing the jewellery. Nothing is brought on record to substantiate that the amount disclosed by the partners of the firm was utilized elsewhere. Therefore, the benefit of the said surrender was to be given for acquiring the jewellery weighing 2518.20 gms, accordingly the addition to the extent of ₹ 21 lacs made in the hands of the assessee deserves to be deleted. For the benefit of CBDT instruction No. 1916 for the jewellery found in the locker belonging to the deceased wife of the assessee Smt. Saroj Lashkary and in possession of male members i.e. Shri Shyam Sunder Lashkary and this assessee it is noticed that in the answer to the question No. 26, the assessee categorically stated that the jewellery also include the jewellery of his deceased wife Smt. Saroj Lashkary, therefore, the benefit of 500 gms gold jewellery was to be given on account of jewellery belonging to deceased wife of the assessee, particularly when it was found from the locker which was in her name. Therefore, the jewellery weighing 500 gms should have been treated as explained. CIT(A) was not justified in denying the benefit to the male members for 100 gms gold jewellery each i.e. to Shri Shyam Sunder Lashkary, father of the assessee and the assessee himself, particularly when the similar benefit was allowed in identical circumstances to other members of the family, therefore in reference to instruction No. 1916 of the CBDT, the benefit of 200 gms gold jewellery is also directed to be given as per the ratio laid down in the case of CIT Vs Kailash Chand Sharma (2004 (7) TMI 647 - RAJASTHAN HIGH COURT) As regards to the silver articles is concerned, in our opinion, the Ld. CIT(A) was fully justified in deleting the addition by holding that it was customary to receive silver utensils and articles in the marriage and other auspicious occasions, therefore, considering the family status of the assessee, the silver articles found by the searched party was not unreasonable. Appeal of the assessee are allowed.
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