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2021 (6) TMI 968 - AT - Income TaxUnexplained investment in Jewellery - search party found invoices of jewellery - Central Board of Direct Taxes Circular No. 1916, dated May 11, 1994, lays down guidelines for seizure of jewellery and ornaments in the course of search - HELD THAT:- Having regard to the circular and size of the family, the ornaments to the extent specified in the circular should be accepted as reasonable. The Tribunal, accordingly, found that the jewellery held by the assessee and his family members was well within the limit laid down under the Central Board of Direct Taxes circular and, accordingly, deleted the whole addition on the ground that the jewellery held by each of the family members was below the limits specified in the said circular. Bills of purchase of jewellery were found instead of jewellery itself and assessee has explained that the jewellery is purchased for the friends and relatives of the assessee when the bills are found but the jewellery is not available with the assesseeduring the course of search the addition is also required to be made u/s 69 of the act. Therefore we do not find any difference in the above those situations so far as the overall jewellery found during the course of search as well as the bills of such jewellery do not exceed the limits specified in the above instructions. Respectfully following the decision of the Coordinate bench for AY 2010-11 and 2013-14 [2019 (2) TMI 1798 - ITAT DELHI] we are of the considered view that addition on account of unexplained investment in jewellery is in teeth of CBDT Circular no. 1914 and deserves to be deleted. - Decided in favour of assessee.
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