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2018 (5) TMI 710 - AT - Income TaxUnexplained jewellery found in search - jewellery received from inheritance or family tradition - Held that:- Since in the instant case the brothers and sisters of the husband of the assessee have confirmed that the mother in law of the assessee had given her jewellery weighing 500 gms before her death since she was staying with her and since the Assessing Officer had also accepted the same, therefore, we find merit in the argument of the ld. counsel for the assessee that order of CIT(A) enhancing the income is not proper. We, therefore, set-aside the order of CIT(A) and allow the jewellery to the extent of 500 gms as explained. The Assessing Officer is directed to delete addition to this extent. Coming to the addition sustained by the AO we find the AO had allowed credit to the tune of 400 gms to the assessee. It is an admitted fact that no wealth-tax return was filed by the assessee to substantiate the acquisition/availability of jewellery. In absence of the same and going by CBDT Instruction No.1916 dated 11.05.1994 we allow 500 gms of jewellery in the hands of the assessee as explained as against 400 gms allowed by the Assessing Officer. Thus, in effect 284 gms of gold remains unexplained the value of which comes to ₹ 2,69,800/- i.e. (950 per gram x 284 gms). AO is directed to restrict the addition to ₹ 2,69,800/-. - Decided partly in favour of assessee.
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