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TMI Blog2015 (11) TMI 1894X X X X Extracts X X X X X X X X Extracts X X X X ..... ition of Rs.7,56,105/- made by AO on account of alleged unexplained investment in Gold and diamond jewelleries. The addition made by the AO and as retained by the ld. CIT(A) is totally unjustified on facts as also in law and may kindly be deleted." 2. To adjudicate on this appeal only a few material facts need to be taken note of. On 8th September, 2011 search action was carried out on the premises of the assessee and certain gold jewellery was found as detailed below :- Description of jewellery Value as per inventory Value 18 K Gold jewellery - 44.990 grams Rs.2115/gram Rs.95153/- 22 K Gold jewellery - 180.79 grams Rs.2585/gram Rs.467342/- 24 K Gold jewellery - 48.000 grams Rs.2820/gram Rs.135360/- Diamond - 2.33 cts Rs.250 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2.33 cts Rs.25000/ct (average) Rs.58250/- Total Rs.756105/- 4. Accordingly, addition of Rs.7,56,105/- was made on account of unexplained jewellery. Aggrieved by the stand so taken by the Assessing Officer, the assessee carried the matter in appeal before the ld. CIT(A). Ld. CIT(A), however, in a very cryptic order summarily rejected the arguments of the assessee by observing that "the explanation which the assessee submitted before the Assessing Officer was almost repeated in the appeal proceedings and no further evidence to rebut the finding of the Assessing Officer was furnished" the assessee is aggrieved and is in further appeal before me. 5. I have heard the rival submissions, perused the material on record and duly consi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of jewellery which would generally be held by family members of an assessee belonging to an ordinary Hindu household. The approach adopted by the Tribunal in following the said circular and giving benefit to the assessee, even for explaining the source in respect of the jewellery being held by the family is in consonance with the general practice in Hindu families whereby jewellery is gifted by the relatives and friends at the time of social functions, viz., marriages, birthdays, marriage anniversary and other festivals. These gifts are customary and customs prevailing in a society cannot be ignored. Thus although the circular had been issued for the purpose of non-seizure of jewellery during the course of search, the basis for the same rec ..... X X X X Extracts X X X X X X X X Extracts X X X X
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