TMI Blog2020 (2) TMI 1092X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee is not able to explain the same then the quantity prescribed under the said CBDT Instruction No. 1916 in respect of married female member, unmarried female member and male member of the assessee would be treated as a reasonable holding of jewellery on account of acquisition of that much jewellery on various occasions of marriages, other social customary occasions as prevailing in the society. Reasonable possession of the jewellery as per the customs prevailing in the society is the basis for allowing the benefit of certain quantity of jewellery explained by the CBDT Instruction No. 1916 dated 11-05-1994 which means that the assessee need not to explain the source of jewellery found in his possession to the extent of specified quantity treated as reasonable possession by family members of the assessee. The said CBDT Instruction No. 1916 allowing the specific quantity as reasonable and need not to be explained, does not include the jewellery which is otherwise explained by proof of documents of acquisition as well as declared/ recorded in the books of account of the assessee. Quantity of jewellery which is otherwise explained by the assessee by producing the purchase b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of search and the ld. CIT(A) has erred in sustaining the sum of ₹ 4,57,404/- out of the same whereas the assessee is having every reason and justification for deletion of the same. 2.1 The assessee is an individual and derives income from salary and other sources. Search and seizure action u/s 132 of the Act was carried out on 14-10-2015 in the case of Data Group and the assessee was also covered by the said search and seizure action. During the course of search, gold and silver jewellery valued at ₹ 32,71,895/- were found from the residential premises of the assessee. The bifurcations of gold and silver jewellery value are as under:- Gold jewellery items ₹ 31,38,245/- Silver jewellery items ₹ 1,33,650/- Total ₹ 32,71,895/- In the course of assessment proceeding, the assessee claimed benefit of CBDT Instruction No. 1916 dated 11-05-1994 to the extent of 850 gms. of jewellery in the hands of his wife, daughter and himself. The AO accepted the said claim and allowed the benefit to the extent of 850 gms. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to time and duly recorded in the books of account as well as supported by purchase bills shall be allowed over and above the quantity of jewellery as per CBDT Instruction No. 1916 dated 11-05-1994. Thus the ld.AR of the assessee submitted that the purchases made by the assessee and shown in the books of account should be considered over and above the reasonable possession as per customs and as allowed by the CBDT Instruction No. 1916 dated 11-05-1994. Therefore, the addition sustained by the ld. CIT(A) to the extent of 343.328 gms. of gold jewellery is liable to be deleted. 2.3 As regards 50% addition sustained by the ld. CIT(A) on account of silver items, the ld.AR of the assessee submitted that silver jewellery items of ₹ 1,33,650/- found during the search and seizure action is reasonable possession by considering the status and standing of the family of the assessee. Therefore, sustaining the addition to the extent of 50% of the value of silver items is not justified. 2.4 On the other hand, the ld. DR submitted that once the AO has granted the benefit of 850 gms. of jewellery by considering the same as reasonable in view of the CBDT Instruction No. 1916 dated 11 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s. as per CBDT Instruction No. 1916 dated 11-05-1994 is already granted, therefore, to that extent, no further benefit can be granted. It is pertinent to note that CBDT Instruction No. 1916 dated 11-05-1994 has explained in case of gold jewellery found in the possession of the assessee during the course of search and seizure action and the assessee is not able to explain the same then the quantity prescribed under the said CBDT Instruction No. 1916 in respect of married female member, unmarried female member and male member of the assessee would be treated as a reasonable holding of jewellery on account of acquisition of that much jewellery on various occasions of marriages, other social customary occasions as prevailing in the society. Therefore, reasonable possession of the jewellery as per the customs prevailing in the society is the basis for allowing the benefit of certain quantity of jewellery explained by the CBDT Instruction No. 1916 dated 11-05-1994 which means that the assessee need not to explain the source of jewellery found in his possession to the extent of specified quantity treated as reasonable possession by family members of the assessee. The said CBDT Instructi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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