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2018 (11) TMI 1704 - AT - Income TaxAddition on account of diamond jewellery found during the course of search - search and seizure operation u/s 132(1) - unexplained diamond jewellery of 47.18 carat treating the same as not covered by the CBDT Instruction No.1916 dated 11th April, 1994 jewellery as disclosed in the Wealth-tax Act - HELD THAT:- Merely because the jewellery is studded with the diamond of 47.18 carat in the instant case, the same cannot be added in the hands of the assessee when such jewellery formed part of the gross weight of the jewellery found from the premises of the assessee which is within the permissible limits prescribed as per CBDT Instruction No.1916 dated 11th April, 1994. The decision of Mrs. Nawaz Singhania vs. DCIT [ 2018 (1) TMI 21 - ITAT MUMBAI] relied on by the ld. counsel for the assessee supports his case wherein the Tribunal, after considering the CBDT Instruction dated 11th April, 1994, has deleted the addition on account of gold and diamond jewellery. Since the addition has been deleted by the CIT(A) and the Revenue is not in appeal before the Tribunal, therefore, we are of the considered opinion that the CIT(A) is not justified in sustaining the addition on account of unexplained diamond jewellery of 47.18 carat treating the same as not covered by the CBDT Instruction No.1916 dated 11th April, 1994. We, therefore, set aside the order of the CIT(A) and direct the Assessing Officer to delete the addition. - Decided in favour of assessee.
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