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2018 (2) TMI 101 - AT - Income TaxAddition on account of ornament, jewellery and silver found during the course of search - guidelines in the matter of seizure of jewellery - Held that:- CBDT instructions in our view provides a guideline to the search conducting team that no seizure should be made of the jewellery and ornaments found during the course of search proceedings u/s 132 of the Act, if the same have been duly declared in the wealth tax returns filed by the tax payer or where such ornaments are within the prescribed limits of 500, 250 or 100 grams as stated in the said instructions. Out of total seized jewellery of ₹ 22,65,625/- (being the value of seized jewellery as on the date of search), we find that the assessee has been successful enough to explain the jewellery worth ₹ 17,59,500/- on account of following; (i) Diamond jewellery belonging to assessee’s wife purchased in 1993 for ₹ 2,16,000/- (duly shown in the balance sheet) which values at ₹ 10,77,000/- as on date of search. (ii) secondly the Gold jewellery weighing around 350 grams which the assessee received as per will of her grand mother in 1993 which is also shown in the balance sheet at a cost of ₹ 1,60,930/-. We have already accepted that the jewellery worth ₹ 17,59,500/- was purchased in the earlier years as well as some part received by “WILL”. However, as regards the remaining gold jewellery, silver items and diamond jewellery valuing ₹ 5,06,000/- there is no specific reply given by the assessee. We therefore, looking to the fact that assessee was living with his mother and wife and also in view of CBDT Instruction No.1916 dated 11.5.94 discussed above sustain a total addition of ₹ 2,50,000/- for unexplained jewellery. Accordingly the appeal of the assessee is partly allowed.
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