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2012 (10) TMI 578 - AT - Income TaxUnaccounted jewelery - search & seizure - Held that:- As decided in CIT Versus Ratanlal Vyaparilal Jain [2010 (7) TMI 769 - GUJARAT HIGH COURT] Central Board of Direct Taxes Circular No. 1916, dated May 11, 1994, lays down guidelines for seizure of jewellery and ornaments in the course of search, the same takes into account the quantity of jewellery which would generally be held by the family members of an assessee belonging to an ordinary Hindu household. The approach adopted by the Tribunal in following the said circular and giving benefit to the assessee, even for explaining the source in respect of the jewellery being held by the family is in consonance with the general practice in the Hindu families whereby jewellery is gifted by the relatives and friends at the time of social functions, viz., marriages, birthdays, marriage anniversary and other festivals. These gifts are customary and customs prevailing in a society cannot be ignored. Thus, although the circular had been issued for the purpose of non-seizure of jewellery during the course of search, the basis for the same recognizes customs prevailing in the Hindu society. In the circumstances, unless the Revenue shows anything to the contrary, it can safely be presumed that the source to the extent of the jewellery stated in the circular stands explained. In the present case also the marriage of the assessee took place 25 years ago from the date of search and only jewellery was found of 1164 gms consisting of six family members. Therefore, these are not such jewellery which could not be said that could not acquired on account of marriage of the assessee and on account of the other occasions i.e birthdays of the children and various others religious occasions etc. - in favour of assessee.
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