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2021 (9) TMI 1428 - AT - Income TaxAddition u/s. 69A for the alleged unexplained jewellery - HELD THAT:- We note that gold seized was only 636.790 grams embedded with diamonds of 7.95 carats, and in the assessee's family there are three married ladies, three married males and two minors. Three married ladies may hold the gold up to 1500 grams, which need not to be explained by the assessee, as per said CBDT instruction, therefore it seems to us clearly that gold seized was only 636.790 grams embedded with diamonds of 7.95 carats, which is below the limit prescribed by the CBDT, therefore, the Department ought not to have seized such gold. It is a settled law that the Circulars issued by CBDT are binding on the Revenue. This position was confirmed in the case of Commissioner of Customs v. Indian Oil Corpn. Ltd. [2004 (2) TMI 66 - SUPREME COURT] wherein Their Lordships examined the earlier decisions of the Apex Court with regard to binding nature of the Circular and laid down that when a circular issued by the Board remains in operation then the Revenue is bound by it and cannot be allowed to plead that it is not valid or that it is contrary to the terms of the statute. At the cost of repetition, we state that in assessee's case, the family contains three married ladies, three married male members and two minors, therefore considering the number of family members as mentioned above, no addition is warranted in the hands of the assessee, therefore, we delete the addition. Appeal of assessee allowed.
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