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2018 (1) TMI 21 - AT - Income TaxAddition on account of jewellery u/s. 69A - CBDT in their Instruction 1916 dated 11/05/1994 gave powers to the department of taking into account the status of the family, customs and practices of the community to which the family belongs - Held that:- The claim of gifts has been there before assessing officer and therefore the argument that before CIT(A) in earlier submission this claim was not put up carries no weight for the purpose of dismissal of the claim itself. And, as for Wealth tax returns, it needs to be understood that there is always a cyclical kind of rotation between the item being re-made, gifts received etc. This is recognized by the CBDT in their Instruction 1916 dated 11/05/1994 when they gave powers to the department of taking into account the status of the family, customs and practices of the community to which the family belongs. Therefore rejection in the manner done by the appellate authority is not justified at all. The CBDT Instruction 1916 dated 11th May 1994, in particular clause (iii) has to be looked into in background perspective of Raymond Group to which assessee belongs. The assessee has to attend social gatherings. The family functions are conducted on large scales and the list of invitees again is the cream of the society. A necessary concomitant is remaking of the jewellery; for repetition of the same items in any Indian society, including that of assessee, is bound to be looked down upon. Another necessary corollary is the spate of gifts that are received and, frequently, these are ornaments and jewellery, often high value items. Keeping the status of assessee’s family in mind as well as customs and practices of the community to which the family belongs as detailed in preceding paragraphs/ the benefit of CBDT Instruction 1916 dated 11th May 1994, is warranted for assessee. No merit for the addition so made on account of Gold and Diamond jewellery. - Decided in favour of assessee
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