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2022 (9) TMI 1078 - AT - Income TaxUnexplained jewellery - search action at the residential premises and locker, various items of gold jewellery and diamond jewellery were found which were valued from the Government Approved Valuer - Jewellery earned as per Indian customs and traditions - HELD THAT:- It is undisputed fact that during the time of search, the assessee has stated that these jewelleries mainly belongs to his wife and his mother and are ancestral jewellery which were gifted during the time of his marriage by his relatives, parents and grand parents and also the parents of his wife. During the course of assessment proceedings itself, the assessee filed the copies of valuation report which proves that these jewelleries are 10-30 years old belonging to the family members. The details of which have been incorporated in the appellate order. Some of the valuation reports were for the year 1990, 2002 and 2009. AO nowhere mentioned about the valuation report which was filed before him and duly noted by Ld. CIT (A) who has tallied the description of the jewelleries as given in the valuation report filed by the assessee from the valuation report of the Govt. Approved Valuer. It was after taking into account the said reports, he has given part relief. Thus, the jewellery which was found on the possession of his wife and mother were old jewelleries and ancestral inheritance and also gifted 2-3 decades ago. CBDT Instruction no. 1916 which has been subject matter of interpretation by various courts in the case of Smt. Pati Devi [1999 (2) TMI 43 - KARNATAKA HIGH COURT], CIT vs. Ghanshyam Das Johri [2013 (10) TMI 1187 - ALLAHABAD HIGH COURT] and Ratanlal vs. Yaparilal Jain [2010 (7) TMI 769 - GUJARAT HIGH COURT] and others and several other decisions of the Coordinate Bench, the courts have held that CBDT instruction should be taken as guiding factor for presuming assessee to the extent of limit prescribed for the family members should be treated as explained looking to the Indian customs and traditions where jewelleries were given to the ladies at the time of marriage and other occasions. Thus, when the various Hon’ble High Courts have held this proposition in favour of the assessee, we find that the ratio laid down has more pursusive value. CBDT circular strongly prescribed that in excess of assessee wealth tax, gold jewellery ornaments found in excess of the carat weight declared in the wealth tax return only need to be assessed. Thus on the peculiar facts, the addition was confirmed by the Hon’ble High Court, which ratio cannot be made applicable here. Accordingly, the order of Ld. CIT(A) giving part relief is confirmed. Therefore the ground raised by the revenue is dismissed. Addition on account of unaccounted cash - As not only assessee had shown there was huge withdrawal from his regular bank account but has also shown withdrawals of bank account more than 11 lakhs and also in the income tax return for AY 2016-17, Rs. 4,93,824/- was shown as cash in hand. Thus to this extent, Ld. CIT(A) has rightly held that the said cash cannot be treated as unexplained or undeclared. Accordingly, the order of Ld. CIT(A) on this ground is confirmed.
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