During the search and seizure action jewellery valuing Rs.8,15,796/-and cash of Rs.21,200/-were found but not seized. The gold jewellery of 281.200 gms was found along with one diamond jewellery and silver 2.51 kg. In the course of search during the statement recorded, assessee stated that jewellery belongs to her and family members which has been received on various occasions including marriage.

The ITAT held that the Instruction No.1916 dated 11.05.1994 issued by CBDT lays down guidelines for seizure of jewellery and ornaments in course of search. Point No. (ii) from the same reads that “In the case of a person not assessed to wealth-tax gold jewellery and ornaments to the extent of 500 gms. per married lady, 250 gms. per unmarried lady and 100 gms per male member of the family need not be seized.” Relying on the above instruction and decisions of various High Courts Hon’ble ITAT deleted the entire addition and observed that “unless anything contrary is shown it can safely be presumed as the source of the Jewellery is explained. (ITA No. 1319/Mum/2021; dated 31/05/2023) (AY. 2017-18).